Southfield, MI, Oct. 25, 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 third quarter results for 2021.

Financial Results for the Quarter and Nine Months Ended September 30, 2021

For the quarter ended September 30, 2021, total revenues increased $283.8 million, or 70.9 percent, to approximately $684.3 million compared to $400.5 million for the same period in 2020. Net income attributable to common stockholders increased $150.6 million, or 185.4 percent, to approximately $231.8 million, or $2.00 per diluted common share, compared to net income attributable to common stockholders of $81.2 million, or $0.83 per diluted common share, for the same period in 2020.

For the nine months ended September 30, 2021, total revenues increased $716.1 million, or 70.6 percent, to $1.7 billion compared to approximately $1.0 billion for the same period in 2020. Net income attributable to common stockholders increased $243.3 million, or 196.2 percent, to approximately $367.3 million, or $3.27 per diluted common share, compared to net income attributable to common stockholders of $124.0 million, or $1.29 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 September 30, 2021, was $2.11 per diluted share and OP unit ("Share") as compared to $1.60 in the corresponding period in 2020, a 31.9 percent increase.
Same Community⁽²⁾ Net Operating Income ("NOI")⁽¹⁾ increased by 12.4 percent for the quarter ended September 30, 2021, as compared to the corresponding period in 2020.
Home Sales Volume increased 63.7 percent to 1,162 homes for the quarter ended September 30, 2021, as compared to 710 homes in the same period in 2020.
Acquisitions totaled $500.8 million during and subsequent to the quarter ended September 30, 2021, including 9 MH communities, 7 RV resorts and 6 marinas.

Gary Shiffman, Chief Executive Officer stated, "We are pleased with our third quarter results which highlight successful execution across all of our growth strategies. The RV segment continues to deliver strong results producing same community NOI growth of nearly 31 percent in the quarter, as we benefit from the demand for outdoor experiences coming from existing and new Sun customers. As the leading industry consolidator, we have completed $1.1 billion of acquisitions year-to-date, and believe our cycle tested ability to create value through acquisitions will continue to result in accretive growth. We have remained active in the capital markets to support this growth including completing our second bond offering of the year. Our talented team will continue to execute on opportunities across operations, acquisitions, expansions and ground-up developments, providing us with a confident outlook."

OPERATING HIGHLIGHTS

Portfolio Occupancy

Total MH and annual RV occupancy was 97.4 percent at September 30, 2021 as compared to 97.2 percent at September 30, 2020, an increase of 20 basis points.

During the quarter ended September 30, 2021, MH and annual RV revenue producing sites increased by 576 sites as compared to an increase of 776 sites during the quarter ended September 30, 2020.

During the nine months ended September 30, 2021, MH and annual RV revenue producing sites increased by 1,673 sites as compared to an increase of 1,927 sites during the nine months ended September 30, 2020.

Same Community⁽²⁾Results

For the 403 MH and RV properties owned and operated by the Company since January 1, 2020, the following table reflects the percentage increases, in total and by segment, for the quarter and nine months ended September 30, 2021:

	Quarter Ended September 30, 2021
	Total Same Community		MH		RV
Revenue	12.8	%	5.2	%	24.2	%
Expense	13.7	%	12.7	%	14.8	%
NOI	12.4	%	2.6	%	30.6	%

	Nine Months Ended September 30, 2021
	Total Same Community		MH		RV
Revenue	12.9	%	5.8	%	27.4	%
Expense	14.6	%	10.2	%	20.0	%
NOI	12.1	%	4.3	%	32.8	%

Same Community adjusted occupancy⁽³⁾ increased to 98.9 percent at September 30, 2021 from 97.4 percent at September 30, 2020, an increase of 150 basis points.

Home Sales

The following table reflects the home sales volume increases for the quarter and nine months ended September 30, 2021:

	Quarter Ended					Nine Months Ended
	September 30, 2021	September 30, 2020	Change	% Change		September 30, 2021	September 30, 2020	Change	% Change
New home sales volume	207	155	52	33.5	%	583	414	169	40.8	%
Pre-owned home sales volume	955	555	400	72.1	%	2,572	1,670	902	54.0	%
Total home sales volume	1,162	710	452	63.7	%	3,155	2,084	1,071	51.4	%

Marina Results

Marina NOI was $64.5 million and $158.7 million for the quarter and nine months ended September 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 September 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
Allen Harbor	Marina	165	—	RI	$	4.0	July
Cisco Grove Campground & RV	RV	18	407	CA	6.6		July
Four Leaf Portfolio^(a)	MH	2,545	340	MI / IN	215.0		July
Harborage Yacht Club	Marina	300	—	FL	22.0		July
Zeman Portfolio^(b)	RV	686	—	IL / NJ	15.2		July
Southern Leisure Resort	RV	496	—	FL	17.8		August
Sunroad Marina	Marina	617	—	CA	84.4		August
Lazy Lakes RV	RV	99	—	FL	9.8		August
Puerto del Rey	Marina	1,450	—	Puerto Rico	92.3		September
Stingray Point	Marina	219	—	VA	2.9		September
Detroit River	Marina	440	—	MI	8.8		September
Jetstream RV Resort	RV	202	—	TX	17.5		September
Subtotal		7,237	747		496.3

Acquisitions subsequent to quarter end
Beaver Brook Campground	RV	204	150	ME	4.5		October
Subtotal		204	150		4.5

Total acquisitions		7,441	897		$	500.8

^(a) Includes nine MH communities.

^(b) Includes two RV communities.

During and subsequent to the nine months ended September 30, 2021, the Company acquired 38 properties totaling 11,910 sites, wet slips and dry storage spaces and 897 sites for expansion for a total purchase price of $1.1 billion.

During the quarter ended September 30, 2021, the Company acquired three land parcels, which are located in Ft. Collins and Ft. Lupton, Colorado and Leighton, Michigan, approved for the development of over 500 MH sites, for total consideration of $7.7 million.

During the quarter ended September 30, 2021, the Company sold six MH communities located in Arizona, Illinois, Indiana and Missouri for $162.1 million.

Construction Activity

During the quarter ended September 30, 2021, the Company completed the construction of over 230 sites in two ground-up developments and over 90 expansion sites in two RV resorts.

During the nine months ended September 30, 2021, the Company completed the construction of over 580 sites in four ground-up developments and over 320 expansion sites in three MH communities and three RV resorts.

BALANCE SHEET, CAPITAL MARKETS ACTIVITY AND OTHER ITEMS

Debt

As of September 30, 2021, the Company had approximately $4.7 billion in debt outstanding. The weighted average interest rate was 3.3 percent and the weighted average maturity was 9.6 years. At September 30, 2021, the Company's net debt to trailing twelve month Recurring EBITDA⁽¹⁾ ratio was 4.9 times. The Company had $71.6 million of unrestricted cash on hand.

Senior Unsecured Notes

Subsequent to the quarter ended September 30, 2021, Sun Communities Operating Limited Partnership ("SCOLP"), the Company's operating partnership, issued $450.0 million of senior unsecured notes with an interest rate of 2.3 percent and a seven-year term, due November 1, 2028 (the "2028 Notes"), and $150.0 million of senior unsecured notes with an interest rate of 2.7 percent, with a 10-year term, due July 15, 2031 (the "2031 Notes"). The 2031 Notes are additional notes of the same series as the $600.0 million aggregate principal amount of 2.7 percent Senior Notes which are due July 15, 2031 that SCOLP issued on June 28, 2021. The net proceeds from the offering were approximately $595.5 million after deducting underwriters' discounts and estimated offering expenses.

Equity Transaction

At the Market Offering

In September 2021, the Company completed the sale of 107,400 forward shares of common stock for $21.4 million under the terms of its At the Market Offering Sales Agreement. The average price before underwriting discounts and commissions was $199.42 per share. The Company expects to settle the forward shares by September 2022.

2021 GUIDANCE

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

	Previous Range	Revised Range
	FY 2021E	FY 2021E	4Q 2021E
Basic earnings per share	$2.24 - $2.36	$3.42 - $3.48	$0.15 - $0.21
Core FFO⁽¹⁾ per fully diluted Share	$6.25 - $6.37	$6.44 - $6.50	$1.24 - $1.30

Basic earnings per share and Core FFO⁽¹⁾per fully diluted share and calculated independently for each quarter; as a result, the sum of the quarters may differ from the annual calculation. Full year 2021 guidance is based on the annual calculation.

	Previous Range	Revised Range
	FY 2021E	FY 2021E	4Q 2021E
Same Community NOI⁽¹⁾ growth	9.9% - 10.7%	10.9% - 11.1%	7.2% - 8.0%

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 third quarter results will be held on Tuesday, October 26, 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 November 9, 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 13722742. 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 September 30, 2021, owned, operated, or had an interest in a portfolio of 584 developed MH, RV and marina properties comprising nearly 155,900 developed sites and nearly 44,900 wet slips and dry storage spaces in 38 states, Canada and Puerto Rico.

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, droughts 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 statements.

Investor Information

RESEARCH COVERAGE

Firm	Analyst	Phone	Email
Bank of America Merrill Lynch	Joshua Dennerlein	(646) 855-1681	joshua.dennerlein@baml.com
Barclays	Anthony Powell	(212) 526-8768	anthony.powell@barclays.com
	Allison Gelman	(212) 526-3367	allison.gelman@barclays.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


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 September 30, 2021)

Financial and Operating Highlights

(amounts in thousands, except for *)

	Quarter Ended
	9/30/2021		6/30/2021		3/31/2021		12/31/2020		9/30/2020
Financial Information
Total revenues	$	684,294	$	603,863	$	442,015	$	384,265	$	400,514
Net income	$	250,161	$	120,849	$	27,941	$	9,818	$	89,756
Net income attributable to Sun Communities Inc. common stockholders	$	231,770	$	110,770	$	24,782	$	7,586	$	81,204
Basic earnings per share*	$	2.00	$	0.98	$	0.23	$	0.07	$	0.83
Diluted earnings per share*	$	2.00	$	0.98	$	0.23	$	0.07	$	0.83

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

Recurring EBITDA⁽¹⁾	$	314,499	$	268,225	$	190,830	$	168,527	$	199,321
FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities⁽¹⁾⁽⁴⁾	$	223,069	$	198,017	$	135,925	$	110,849	$	165,209
Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities⁽¹⁾⁽⁴⁾	$	244,535	$	209,620	$	141,036	$	124,872	$	162,624
FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities⁽¹⁾⁽⁴⁾per share - fully diluted*	$	1.92	$	1.70	$	1.22	$	1.03	$	1.63
Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities⁽¹⁾⁽⁴⁾ per share - fully diluted*	$	2.11	$	1.80	$	1.26	$	1.16	$	1.60

Balance Sheet
Total assets	$	12,583,296	$	12,040,990	$	11,454,209	$	11,206,586	$	8,335,717
Total debt	$	4,689,437	$	4,311,175	$	4,417,935	$	4,757,076	$	3,340,613
Total liabilities	$	5,488,469	$	5,099,563	$	5,101,512	$	5,314,879	$	3,791,922

	Quarter Ended
	9/30/2021		6/30/2021		3/31/2021		12/31/2020		9/30/2020
Operating Information*
Properties	584		569		562		552		432

Manufactured home sites	98,301		97,448		96,876		96,688		95,209
Annual RV sites	29,640		28,807		28,441		27,564		26,817
Transient RV sites	27,922		27,032		26,295		25,043		23,728
Total sites	155,863		153,287		151,612		149,295		145,754
Marina wet slips and dry storage spaces	44,859		41,275		38,753		38,152		N/A

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

New home sales volume	207		227		149		156		155
Pre-owned home sales volume	955		931		686		626		555
Total home sales volume	1,162		1,158		835		782		710

	Quarter Ended
	9/30/2021	6/30/2021	3/31/2021	12/31/2020	9/30/2020
Revenue Producing Site Net Gains⁽⁵⁾
MH net leased sites	144	226	127	247	349
RV net leased sites	432	357	387	331	427
Total net leased sites	576	583	514	578	776

Consolidated Balance Sheets

(amounts in thousands)

	September 30, 2021			December 31, 2020
Assets
Land	$	2,457,236		$	2,119,364
Land improvements and buildings	9,469,247			8,480,597
Rental homes and improvements	591,367			637,603
Furniture, fixtures and equipment	590,829			447,039
Investment property	13,108,679			11,684,603
Accumulated depreciation	(2,232,243		)	(1,968,812		)
Investment property, net	10,876,436			9,715,791
Cash, cash equivalents and restricted cash	85,619			92,641
Marketable securities	160,321			124,726
Inventory of manufactured homes	43,708			46,643
Notes and other receivables, net	256,924			221,650
Goodwill	461,609			428,833
Other intangible assets, net	297,625			305,611
Other assets, net	401,054			270,691
Total Assets	$	12,583,296		$	11,206,586
Liabilities
Secured debt	$	3,403,436		$	3,489,983
Unsecured debt	1,286,001			1,267,093
Distributions payable	98,453			86,988
Advanced reservation deposits and rent	223,471			187,730
Accrued expenses and accounts payable	232,590			148,435
Other liabilities	244,518			134,650
Total Liabilities	5,488,469			5,314,879
Commitments and contingencies
Temporary equity	292,394			264,379
Stockholders' Equity
Common stock	1,160			1,076
Additional paid-in capital	8,170,322			7,087,658
Accumulated other comprehensive income	1,752			3,178
Distributions in excess of accumulated earnings	(1,475,634		)	(1,566,636		)
Total Sun Communities, Inc. stockholders' equity	6,697,600			5,525,276
Noncontrolling interests
Common and preferred OP units	85,756			85,968
Consolidated entities	19,077			16,084
Total noncontrolling interests	104,833			102,052
Total Stockholders' Equity	6,802,433			5,627,328
Total Liabilities, Temporary Equity and Stockholders' Equity	$	12,583,296		$	11,206,586

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

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

	Three Months Ended												Nine Months Ended
	September 30, 2021			September 30, 2020			Change			% Change			September 30, 2021			September 30, 2020			Change			% Change
Revenues
Real property (excluding transient)	$	352,553		$	240,076		$	112,477		46.9		%	$	979,537		$	693,491		$	286,046		41.2		%
Real property - transient	126,072			80,412			45,660			56.8		%	235,606			136,473			99,133			72.6		%
Home sales	81,099			47,662			33,437			70.2		%	215,146			126,779			88,367			69.7		%
Service, retail, dining and entertainment	113,039			23,859			89,180			373.8		%	270,103			36,662			233,441			636.7		%
Interest	2,690			2,624			66			2.5		%	8,040			7,609			431			5.7		%
Brokerage commissions and other, net	8,841			5,881			2,960			50.3		%	21,740			13,068			8,672			66.4		%
Total Revenues	684,294			400,514			283,780			70.9		%	1,730,172			1,014,082			716,090			70.6		%
Expenses
Property operating and maintenance	158,095			98,775			59,320			60.1		%	391,609			239,413			152,196			63.6		%
Real estate tax	24,751			17,442			7,309			41.9		%	70,361			52,341			18,020			34.4		%
Home costs and selling	56,567			39,899			16,668			41.8		%	156,920			105,989			50,931			48.1		%
Service, retail, dining and entertainment	87,106			17,615			69,491			394.5		%	211,122			31,539			179,583			569.4		%
General and administrative	43,276			26,834			16,442			61.3		%	126,606			78,710			47,896			60.9		%
Catastrophic event-related charges, net	328			14			314			N/M			3,097			54			3,043			N/M
Business combination	—			—			—			N/A			1,031			—			1,031			N/A
Depreciation and amortization	127,091			88,499			38,592			43.6		%	378,068			259,453			118,615			45.7		%
Loss on extinguishment of debt	—			—			—			N/A			8,108			5,209			2,899			55.7		%
Interest	39,026			30,214			8,812			29.2		%	116,224			94,058			22,166			23.6		%
Interest on mandatorily redeemable preferred OP units / equity	1,047			1,047			—			—		%	3,124			3,130			(6		)	(0.2	)	%
Total Expenses	537,287			320,339			216,948			67.7		%	1,466,270			869,896			596,374			68.6		%
Income Before Other Items	147,007			80,175			66,832			83.4		%	263,902			144,186			119,716			83.0		%
Gain / (loss) on remeasurement of marketable securities	12,072			1,492			10,580			709.1		%	43,227			(2,636		)	45,863			N/M
Gain / (loss) on foreign currency translation	(7,028		)	5,023			(12,051		)	(239.9	)	%	(7,107		)	(2,496		)	(4,611		)	184.7		%
Gain on dispositions of properties	108,104			5,595			102,509			N/M			108,104			5,595			102,509			N/M
Other expense, net⁽⁶⁾	(9,372		)	(3,511		)	(5,861		)	(166.9	)	%	(10,041		)	(4,890		)	(5,151		)	105.3		%
Gain / (loss) on remeasurement of notes receivable	92			(445		)	537			(120.7	)	%	561			(2,311		)	2,872			(124.3	)	%
Income from nonconsolidated affiliates	962			1,204			(242		)	(20.1	)	%	2,927			1,348			1,579			117.1		%
Loss on remeasurement of investment in nonconsolidated affiliates	(119		)	(446		)	327			(73.3	)	%	(130		)	(1,505		)	1,375			(91.4	)	%
Current tax benefit / (expense)	(402		)	107			(509		)	(475.7	)	%	(1,418		)	(462		)	(956		)	206.9		%
Deferred tax benefit / (expense)	(1,155		)	562			(1,717		)	(305.5	)	%	(1,074		)	804			(1,878		)	(233.6	)	%
Net Income	250,161			89,756			160,405			178.7		%	398,951			137,633			261,318			189.9		%
Less: Preferred return to preferred OP units / equity interests	3,101			1,645			1,456			88.5		%	9,000			4,799			4,201			87.5		%
Less: Income attributable to noncontrolling interests	15,290			6,907			8,383			121.4		%	22,629			8,806			13,823			157.0		%
Net Income Attributable to Sun Communities, Inc.	$	231,770		$	81,204		$	150,566		185.4		%	$	367,322		$	124,028		$	243,294		196.2		%

Weighted average common shares outstanding - basic	115,136			97,542			17,594			18.0		%	111,717			95,270			16,447			17.3		%
Weighted average common shares outstanding - diluted	118,072			97,549			20,523			21.0		%	114,291			95,273			19,018			20.0		%

Basic earnings per share	$	2.00		$	0.83		$	1.17		141.0		%	$	3.27		$	1.29		$	1.98		153.5		%
Diluted earnings per share	$	2.00		$	0.83		$	1.17		141.0		%	$	3.27		$	1.29		$	1.98		153.5		%

N/M = Percentage change is not meaningful.

Outstanding Securities and Capitalization

(amounts in thousands except for *)

Outstanding Securities - As of September 30, 2021

	Number of Units / Shares Outstanding	Conversion Rate*	If Converted⁽¹⁾	Issuance Price Per Unit*		Annual Distribution Rate*
Non-convertible Securities
Common shares	115,959	N/A	N/A	N/A		$3.32^

Convertible Securities
Common OP units	2,528	1.0000	2,528	N/A		Mirrors common shares distributions

Series A-1 preferred OP units	275	2.4390	672	$	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 September 30, 2021

Equity	Shares	Share Price*		Total
Common shares	115,959	$	185.10	$	21,464,011
Common OP units	2,528	$	185.10	467,933
Subtotal	118,487			$	21,931,944

Preferred OP units, as converted	2,813	$	185.10	520,686
Total diluted shares outstanding	121,300			$	22,452,630

Debt
Secured debt				$	3,403,436
Unsecured debt				1,286,001
Total debt				$	4,689,437

Total Capitalization				$	27,142,067

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						Nine Months Ended
	September 30, 2021			September 30, 2020			September 30, 2021			September 30, 2020
Net Income Attributable to Sun Communities, Inc. Common Stockholders	$	231,770		$	81,204		$	367,322		$	124,028
Adjustments
Depreciation and amortization	126,814			88,495			377,367			259,543
Depreciation on nonconsolidated affiliates	30			9			91			28
(Gain) / loss on remeasurement of marketable securities	(12,072		)	(1,492		)	(43,227		)	2,636
Loss on remeasurement of investment in nonconsolidated affiliates	119			446			130			1,505
(Gain) / loss on remeasurement of notes receivable	(92		)	445			(561		)	2,311
Income attributable to noncontrolling interests	4,616			6,196			13,678			7,725
Preferred return to preferred OP units	—			498			—			1,498
Interest expense on Aspen preferred OP units	514			514			1,542			1,542
Gain on dispositions of properties	(108,104		)	(5,595		)	(108,104		)	(5,595		)
Gain on dispositions of assets, net	(20,526		)	(5,511		)	(46,245		)	(15,251		)
FFO Attributable to Sun Communities, Inc. Common Stockholders and Dilutive Convertible Securities⁽¹⁾⁽⁴⁾	$	223,069		$	165,209		$	561,993		$	379,970

Adjustments
Business combination expense and other acquisition related costs⁽⁷⁾	2,477			402			6,714			1,291
Loss on extinguishment of debt	—			—			8,108			5,209
Catastrophic event-related charges, net	318			15			3,096			54
(Gain) / loss on earnings - catastrophic event-related	200			(300		)	400			—
(Gain) / loss on foreign currency translation	7,028			(5,024		)	7,107			2,496
Other adjustments, net⁽⁸⁾	11,443			2,322			11,505			2,819
Core FFO Attributable to Sun Communities, Inc. Common Stockholders and Dilutive Convertible Securities⁽¹⁾⁽⁴⁾	$	244,535		$	162,624		$	598,923		$	391,839

Weighted average common shares outstanding - basic	115,136			97,542			111,717			95,270
Add
Common shares dilutive effect from forward equity sale	—			6			—			2
Common stock issuable upon conversion of stock options	—			1			—			1
Restricted stock	438			390			414			395
Common OP units	—			2,476			2,574			2,445
Common stock issuable upon conversion of certain preferred OP units	388			1,213			396			1,220
Weighted Average Common Shares Outstanding - Fully Diluted	115,962			101,628			115,101			99,333

FFO Attributable to Sun Communities, Inc. Common Stockholders and Dilutive Convertible Securities⁽¹⁾⁽⁴⁾ Per Share - Fully Diluted	$	1.92		$	1.63		$	4.88		$	3.83

Core FFO Attributable to Sun Communities, Inc. Common Stockholders and Dilutive Convertible Securities⁽¹⁾⁽⁴⁾ Per Share - Fully Diluted	$	2.11		$	1.60		$	5.20		$	3.94

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

(amounts in thousands)

	Three Months Ended						Nine Months Ended
	September 30, 2021			September 30, 2020			September 30, 2021			September 30, 2020
Net Income Attributable to Sun Communities, Inc. Common Stockholders	$	231,770		$	81,204		$	367,322		$	124,028
Interest income	(2,690		)	(2,624		)	(8,040		)	(7,609		)
Brokerage commissions and other revenues, net	(8,841		)	(5,881		)	(21,740		)	(13,068		)
General and administrative expense	43,276			26,834			126,606			78,710
Catastrophic event-related charges, net	328			14			3,097			54
Business combination expense	—			—			1,031			—
Depreciation and amortization	127,091			88,499			378,068			259,453
Loss on extinguishment of debt	—			—			8,108			5,209
Interest expense	39,026			30,214			116,224			94,058
Interest on mandatorily redeemable preferred OP units / equity	1,047			1,047			3,124			3,130
(Gain) / loss on remeasurement of marketable securities	(12,072		)	(1,492		)	(43,227		)	2,636
(Gain) / loss on foreign currency translation	7,028			(5,023		)	7,107			2,496
Gain on dispositions of properties	(108,104		)	(5,595		)	(108,104		)	(5,595		)
Other expense, net⁽⁶⁾	9,372			3,511			10,041			4,890
(Gain) / loss on remeasurement of notes receivable	(92		)	445			(561		)	2,311
Income from nonconsolidated affiliates	(962		)	(1,204		)	(2,927		)	(1,348		)
Loss on remeasurement of investment in nonconsolidated affiliates	119			446			130			1,505
Current tax (benefit) / expense	402			(107		)	1,418			462
Deferred tax (benefit) / expense	1,155			(562		)	1,074			(804		)
Preferred return to preferred OP units / equity interests	3,101			1,645			9,000			4,799
Income attributable to noncontrolling interests	15,290			6,907			22,629			8,806
NOI⁽¹⁾	$	346,244		$	218,278		$	870,380		$	564,123

	Three Months Ended				Nine Months Ended
	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Real Property NOI⁽¹⁾	$	295,779	$	204,271	$	753,173	$	538,210
Home Sales NOI⁽¹⁾	24,532		7,763		58,226		20,790
Service, retail, dining and entertainment NOI⁽¹⁾	25,933		6,244		58,981		5,123
NOI⁽¹⁾	$	346,244	$	218,278	$	870,380	$	564,123

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

(amounts in thousands)

	Three Months Ended						Nine Months Ended
	September 30, 2021			September 30, 2020			September 30, 2021			September 30, 2020
Net Income Attributable to Sun Communities, Inc. Common Stockholders	$	231,770		$	81,204		$	367,322		$	124,028
Adjustments
Depreciation and amortization	127,091			88,499			378,068			259,453
Loss on extinguishment of debt	—			—			8,108			5,209
Interest expense	39,026			30,214			116,224			94,058
Interest on mandatorily redeemable preferred OP units / equity	1,047			1,047			3,124			3,130
Current tax (benefit) / expense	402			(107		)	1,418			462
Deferred tax (benefit) / expense	1,155			(562		)	1,074			(804		)
Income from nonconsolidated affiliates	(962		)	(1,204		)	(2,927		)	(1,348		)
Less: Gain on dispositions of assets, net	(20,526		)	(5,511		)	(46,245		)	(15,251		)
Less: Gain on dispositions of properties	(108,104		)	(5,595		)	(108,104		)	(5,595		)
EBITDAre⁽¹⁾	$	270,899		$	187,985		$	718,062		$	463,342
Adjustments
Catastrophic event-related charges, net	328			14			3,097			54
Business combination expense	—			—			1,031			—
(Gain) / loss on remeasurement of marketable securities	(12,072		)	(1,492		)	(43,227		)	2,636
(Gain) / loss on foreign currency translation	7,028			(5,023		)	7,107			2,496
Other expense, net⁽⁶⁾	9,372			3,511			10,041			4,890
(Gain) / loss on remeasurement of notes receivable	(92		)	445			(561		)	2,311
Loss on remeasurement of investment in nonconsolidated affiliates	119			446			130			1,505
Preferred return to preferred OP units / equity interests	3,101			1,645			9,000			4,799
Income attributable to noncontrolling interests	15,290			6,907			22,629			8,806
Plus: Gain on dispositions of assets, net	20,526			5,511			46,245			15,251
Recurring EBITDA⁽¹⁾	$	314,499		$	199,949		$	773,554		$	506,090

Non-GAAP and Other Financial Measures

Debt Analysis

(amounts in thousands)

	Quarter Ended
	9/30/2021			6/30/2021			3/31/2021			12/31/2020			9/30/2020
Debt Outstanding
Secured debt	$	3,403,436		$	3,457,734		$	3,472,930		$	3,489,983		$	3,238,926
Unsecured debt
Senior unsecured notes	591,252			591,688			—			—			—
Line of credit and other debt⁽⁹⁾	624,837			191,841			875,093			1,197,181			31,775
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	1,286,001			853,441			945,005			1,267,093			101,687
Total debt	$	4,689,437		$	4,311,175		$	4,417,935		$	4,757,076		$	3,340,613

% Fixed / Floating
Fixed	86.7		%	94.7		%	79.3		%	74.0		%	97.6		%
Floating	13.3		%	5.3		%	20.7		%	26.0		%	2.4		%
Total	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%

Weighted Average Interest Rates
Secured debt	3.78		%	3.75		%	3.75		%	3.75		%	3.84		%
Senior unsecured notes	2.70		%	2.70		%	—		%	—		%	—		%
Line of credit and other debt⁽⁹⁾	0.98		%	0.93		%	1.77		%	2.11		%	1.34		%
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	3.30		%	3.52		%	3.39		%	3.37		%	3.86		%

Debt Ratios
Net Debt / Recurring EBITDA⁽¹⁾ (TTM)	4.9			5.1			6.1			6.9			5.0
Net Debt / Enterprise Value	17.1		%	16.8		%	19.7		%	21.4		%	18.3		%
Net Debt / Gross Assets	31.2		%	29.6		%	31.8		%	35.5		%	31.6		%

Coverage Ratios
Recurring EBITDA⁽¹⁾ (TTM) / Interest	6.1			5.6			5.0			4.9			4.8
Recurring EBITDA⁽¹⁾(TTM) / Interest + Pref. Distributions + Pref. Stock Distribution	6.0			5.5			4.8			4.8			4.6

Maturities / Principal Amortization Next Five Years	2021			2022			2023			2024			2025
Secured debt
Maturities	$	—		$	82,155		$	185,619		$	315,330		$	50,529
Principal amortization	15,194			61,411			60,788			57,344			53,933
Line of credit and other debt⁽⁹⁾	331			10,000			10,000			10,000			594,506
Preferred Equity - Sun NG Resorts - mandatorily redeemable	—			—			—			33,428			1,821
Preferred OP units - mandatorily redeemable	—			—			—			27,373			—
Total	$	15,525		$	153,566		$	256,407		$	443,475		$	700,789

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

Same Community⁽²⁾Summary

(amounts in thousands)


	Three Months Ended
	Total Same Community								MH										RV
	September 30, 2021		September 30, 2020		Change		% Change		September 30, 2021		September 30, 2020		Change			% Change			September 30, 2021		September 30, 2020		Change		% Change
Financial Information
Revenue
Real property (excluding transient)	$	220,291	$	207,407	$	12,884	6.2	%	$	173,979	$	167,051	$	6,928		4.1		%	$	46,312	$	40,356	$	5,956	14.8	%
Real property - transient	87,049		67,408		19,641		29.1	%	238		242		(4		)	(1.7	)	%	86,811		67,166		19,645		29.2	%
Other	13,352		9,375		3,977		42.4	%	4,845		2,863		1,982			69.2		%	8,507		6,512		1,995		30.6	%
Total Operating	320,692		284,190		36,502		12.8	%	179,062		170,156		8,906			5.2		%	141,630		114,034		27,596		24.2	%
Expense
Property Operating^(10)(11)	102,413		90,048		12,365		13.7	%	49,567		43,996		5,571			12.7		%	52,846		46,052		6,794		14.8	%
Real Property NOI⁽¹⁾	$	218,279	$	194,142	$	24,137	12.4	%	$	129,495	$	126,160	$	3,335		2.6		%	$	88,784	$	67,982	$	20,802	30.6	%

	Nine Months Ended
	Total Same Community								MH										RV
	September 30, 2021		September 30, 2020		Change		% Change		September 30, 2021		September 30, 2020		Change			% Change			September 30, 2021		September 30, 2020		Change		% Change
Financial Information
Revenue
Real property (excluding Transient)	$	652,978	$	615,711	$	37,267	6.1	%	$	518,511	$	495,989	$	22,522		4.5		%	$	134,467	$	119,722	$	14,745	12.3	%
Real property - transient	163,932		117,277		46,655		39.8	%	1,200		1,343		(143		)	(10.6	)	%	162,732		115,934		46,798		40.4	%
Other	31,077		18,424		12,653		68.7	%	14,472		7,778		6,694			86.1		%	16,605		10,646		5,959		56.0	%
Total Operating	847,987		751,412		96,575		12.9	%	534,183		505,110		29,073			5.8		%	313,804		246,302		67,502		27.4	%
Expense
Property Operating^(10)(11)	261,754		228,314		33,440		14.6	%	136,927		124,297		12,630			10.2		%	124,827		104,017		20,810		20.0	%
Real Property NOI⁽¹⁾	$	586,233	$	523,098	$	63,135	12.1	%	$	397,256	$	380,813	$	16,443		4.3		%	$	188,977	$	142,285	$	46,692	32.8	%

Same Community⁽²⁾Summary (continued)

	As of
	September 30, 2021			September 30, 2020			Change				% Change
Other Information
Number of properties	403			403			—

MH occupancy	97.5		%
RV occupancy	100.0		%
MH & RV blended occupancy⁽³⁾	98.1		%

Adjusted MH occupancy⁽³⁾	98.5		%
Adjusted RV occupancy⁽³⁾	100.0		%
Adjusted MH & RV blended occupancy⁽³⁾	98.9		%	97.4		%	1.5			%

Sites available for development	7,092			7,453			(361		)

Monthly base rent per site - MH	$	606		$	586		$	20			3.4%⁽¹³⁾
Monthly base rent per site - RV⁽¹²⁾	$	528		$	503		$	25			5.0%⁽¹³⁾
Monthly base rent per site - Total⁽¹²⁾	$	588		$	567		$	21			3.7%⁽¹³⁾

Marina Summary

(amounts in thousands except for statistical data)


	Three Months Ended		Nine Months Ended
	September 30, 2021		September 30, 2021
Financial Information
Revenues
Real property (excluding transient)	$	72,888	$	180,908
Real property - transient	6,251		11,376
Other	5,815		11,134
Total Operating	84,954		203,418
Expenses
Property Operating^(a)	33,995		85,816
Real Property NOI	50,959		117,602
Service, retail, dining and entertainment
Revenue	74,110		200,702
Expense	60,606		159,632
NOI	13,504		41,070

Marina NOI	$	64,463	$	158,672

Other Information - Marinas			September 30, 2021
Number of properties^(b)			120
Total wet slips and dry storage			44,859

^(a) Marina results net $4.3 million and $10.5 million of certain utility revenue against the related utility expense in property operating and maintenance expense for the quarter and nine months ended September 30, 2021.

^(b) Marina properties consisted of 14 properties acquired in 2021 and 106 properties acquired in 2020.

MH and RV Acquisitions and Other Summary⁽¹⁴⁾

(amounts in thousands except for statistical data)


	Three Months Ended		Nine Months Ended
	September 30, 2021		September 30, 2021
Financial Information
Revenues
Real property (excluding transient)	$	11,060	$	29,248
Real property - transient	32,772		60,298
Other	4,168		7,357
Total Operating	48,000		96,903
Expenses
Property Operating^(a)	21,459		47,565
Real Property NOI	$	26,541	$	49,338

Other Information - MH and RVs			September 30, 2021
Number of properties			61
Occupied sites			7,312
Developed sites			8,357
Occupancy %			87.5		%
Transient sites			9,293

^(a) MH and RV Acquisitions and Other results net $1.7 million and $4.1 million of certain utility revenue against the related utility expense in property operating and maintenance expense for the quarter and nine months ended September 30, 2021.

Home Sales Summary

(amounts in thousands except for *)


	Three Months Ended													Nine Months Ended
	September 30, 2021			September 30, 2020			Change				% Change			September 30, 2021			September 30, 2020			Change				% Change
Financial Information
New Homes
New home sales	$	31,433		$	23,734		$	7,699			32.4		%	$	89,166		$	58,536		$	30,630			52.3	%
New home cost of sales	25,856			19,294			6,562				34.0		%	72,799			47,611			25,188				52.9	%
Gross Profit – new homes	5,577			4,440			1,137				25.6		%	16,367			10,925			5,442				49.8	%
Gross margin % – new homes	17.7		%	18.7		%	(1.0		)	%				18.4		%	18.7		%	(0.3		)	%
Average selling price – new homes*	$	151,850		$	153,123		$	(1,273	)		(0.8	)	%	$	152,943		$	141,391		$	11,552			8.2	%

Pre-owned Homes
Pre-owned home sales	$	49,666		$	23,928		$	25,738			107.6		%	$	125,980		$	68,243		$	57,737			84.6	%
Pre-owned home cost of sales	25,840			16,943			8,897				52.5		%	70,369			47,839			22,530

Sun Communities, Inc. Reports 2021 Third Quarter Results