News Release Details

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					47.1	%
Gross Profit – pre-owned homes	23,826				6,985				16,841					241.1		%		55,611				20,404				35,207					172.5	%
Gross margin % – pre-owned homes	48.0		%		29.2		%		18.8			%						44.1		%		29.9		%		14.2			%
Average selling price – pre-owned homes*	$	52,006			$	43,114			$	8,892				20.6		%		$	48,981			$	40,864			$	8,117				19.9	%
Total Home Sales
Revenue from home sales	$	81,099			$	47,662			$	33,437				70.2		%		$	215,146			$	126,779			$	88,367				69.7	%
Cost of home sales	51,696				36,237				15,459					42.7		%		143,168				95,450				47,718					50.0	%
Home selling expenses	4,871				3,662				1,209					33.0		%		13,752				10,539				3,213					30.5	%
Home Sales NOI(1)	$	24,532			$	7,763			$	16,769				216.0		%		$	58,226			$	20,790			$	37,436				180.1	%
Statistical Information
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	%

Rental Program 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
Revenues
Home rent	$	16,369			$	16,171			$	198				1.2		%		$	50,451			$	46,607			$	3,844				8.2		%
Site rent	17,584				19,101				(1,517		)			(7.9	)	%		55,350				55,699				(349		)			(0.6	)	%
Total	33,953				35,272				(1,319		)			(3.7	)	%		105,801				102,306				3,495					3.4		%
Expenses
Rental Program operating and maintenance	5,547				5,328				219					4.1		%		15,332				14,576				756					5.2		%
Rental Program NOI(1)	$	28,406			$	29,944			$	(1,538	)			(5.1	)	%		$	90,469			$	87,730			$	2,739				3.1		%
Other Information
Number of sold rental homes*	307				225				82					36.4		%		799				581				218					37.5		%
Number of occupied rentals, end of period*																		10,123				11,729				(1,606		)			(13.7	)	%
Investment in occupied rental homes, end of period																		$	559,021			$	625,922			$	(66,901	)			(10.7	)	%
Weighted average monthly rental rate, end of period*																		$	1,114			$	1,032			$	82				7.9		%

Rental Program NOI is included in Real Property NOI. Rental Program NOI is separately reviewed to assess the overall growth and performance of the Rental Program and its financial impact on the Company's operations.

MH and RV Property Summary
		9/30/2021			6/30/2021			3/31/2021			12/31/2020			9/30/2020
FLORIDA
Properties		131			129			128			128			127
MH & Annual RV Developed sites(15)		40,500			40,171			40,011			39,803			39,517
Occupied MH & Annual RV(15)		39,747			39,402			39,283			39,063			38,743
MH & Annual RV Occupancy %(15)		98.1	%		98.1	%		98.2	%		98.1	%		98.0	%
Transient RV sites		6,163			5,895			5,823			6,011			5,993
Sites for development		1,414			1,414			1,497			1,497			1,427
MICHIGAN
Properties		83			75			74			74			74
MH & Annual RV Developed sites(15)		31,997			29,600			29,092			29,086			29,086
Occupied MH & Annual RV(15)		30,782			28,671			28,145			28,109			28,033
MH & Annual RV Occupancy %(15)		96.2	%		96.9	%		96.7	%		96.6	%		96.4	%
Transient RV sites		554			509			541			546			546
Sites for development		1,481			1,182			1,182			1,182			1,182
CALIFORNIA
Properties		37			36			36			35			34
MH & Annual RV Developed sites(15)		6,760			6,736			6,734			6,675			6,372
Occupied MH & Annual RV(15)		6,642			6,613			6,609			6,602			6,290
MH & Annual RV Occupancy %(15)		98.3	%		98.2	%		98.1	%		98.9	%		98.7	%
Transient RV sites		2,410			2,416			2,418			2,231			2,236
Sites for development		534			127			127			373			373
TEXAS
Properties		26			25			24			24			24
MH & Annual RV Developed sites(15)		8,004			7,947			7,928			7,766			7,659
Occupied MH & Annual RV(15)		7,805			7,731			7,671			7,572			7,427
MH & Annual RV Occupancy %(15)		97.5	%		97.3	%		96.8	%		97.5	%		97.0	%
Transient RV sites		2,131			1,835			1,773			1,810			1,917
Sites for development		1,066			1,194			1,275			1,378			1,378
ONTARIO, CANADA
Properties		16			16			16			15			15
MH & Annual RV Developed sites(15)		4,361			4,302			4,199			4,090			4,067
Occupied MH & Annual RV(15)		4,361			4,302			4,199			4,090			4,067
MH & Annual RV Occupancy %(15)		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Transient RV sites		807			870			964			966			920
Sites for development		1,525			1,525			1,525			1,525			1,593
CONNECTICUT
Properties		16			16			16			16			16
MH & Annual RV Developed sites(15)		1,901			1,901			1,897			1,897			1,898
Occupied MH & Annual RV(15)		1,760			1,757			1,746			1,739			1,736
MH & Annual RV Occupancy %(15)		92.6	%		92.4	%		92.0	%		91.7	%		91.5	%
Transient RV sites		104			104			108			108			107
Sites for development		—			—			—			—			—
MAINE
Properties		13			13			13			13			7
MH & Annual RV Developed sites(15)		2,220			2,204			2,190			2,190			1,092
Occupied MH & Annual RV(15)		2,136			2,127			2,119			2,121			1,089
MH & Annual RV Occupancy %(15)		96.2	%		96.5	%		96.8	%		96.8	%		99.7	%
Transient RV sites		776			792			805			805			819
Sites for development		30			30			30			30			30
ARIZONA
Properties		12			14			14			14			13
MH & Annual RV Developed sites(15)		4,071			4,401			4,391			4,323			4,274
Occupied MH & Annual RV(15)		3,853			4,116			4,101			4,030			3,957
MH & Annual RV Occupancy %(15)		94.6	%		93.5	%		93.4	%		93.2	%		92.6	%
Transient RV sites		1,237			1,260			1,270			1,337			1,386
Sites for development		—			—			—			—			—
INDIANA
Properties		12			12			12			12			11
MH & Annual RV Developed sites(15)		3,057			3,087			3,087			3,087			3,087
Occupied MH & Annual RV(15)		2,963			2,970			2,961			2,950			2,957
MH & Annual RV Occupancy %(15)		96.9	%		96.2	%		95.9	%		95.6	%		95.8	%
Transient RV sites		1,089			1,089			1,089			1,089			534
Sites for development		204			277			277			277			277
COLORADO
Properties		10			10			10			10			10
MH & Annual RV Developed sites(15)		2,552			2,453			2,453			2,453			2,453
Occupied MH & Annual RV(15)		2,431			2,420			2,395			2,380			2,365
MH & Annual RV Occupancy %(15)		95.3	%		98.7	%		97.6	%		97.0	%		96.4	%
Transient RV sites		987			987			962			962			930
Sites for development		1,629			1,225			1,250			1,250			1,282
NEW HAMPSHIRE
Properties		10			10			10			10			10
MH & Annual RV Developed sites(15)		1,777			1,777			1,776			1,777			1,833
Occupied MH & Annual RV(15)		1,769			1,769			1,769			1,767			1,822
MH & Annual RV Occupancy %(15)		99.5	%		99.5	%		99.6	%		99.4	%		99.4	%
Transient RV sites		602			602			456			460			404
Sites for development		111			151			151			151			151
NEW YORK
Properties		10			10			10			9			9
MH & Annual RV Developed sites(15)		1,457			1,457			1,452			1,419			1,414
Occupied MH & Annual RV(15)		1,432			1,428			1,415			1,380			1,371
MH & Annual RV Occupancy %(15)		98.3	%		98.0	%		97.5	%		97.3	%		97.0	%
Transient RV sites		1,684			1,684			1,689			1,422			900
Sites for development		371			371			371			371			371
OHIO
Properties		9			9			9			9			9
MH & Annual RV Developed sites(15)		2,796			2,797			2,797			2,790			2,790
Occupied MH & Annual RV(15)		2,753			2,770			2,760			2,755			2,758
MH & Annual RV Occupancy %(15)		98.5	%		99.0	%		98.7	%		98.7	%		98.9	%
Transient RV sites		129			128			128			135			135
Sites for development		22			22			22			22			22
OTHER STATES
Properties		79			80			80			77			73
MH & Annual RV Developed sites(15)		16,488			17,422			17,310			16,896			16,484
Occupied MH & Annual RV(15)		16,178			16,934			16,796			16,394			15,977
MH & Annual RV Occupancy %(15)		98.1	%		97.2	%		97.0	%		97.0	%		96.9	%
Transient RV sites		9,249			8,861			8,269			7,161			6,901
Sites for development		1,925			1,925			1,969			1,969			2,044
TOTAL - MH AND RV PORTFOLIO
Properties		464			455			452			446			432
MH & Annual RV Developed sites(15)		127,941			126,255			125,317			124,252			122,026
Occupied MH & Annual RV(15)		124,612			123,010			121,969			120,952			118,592
MH & Annual RV Occupancy %(15)		97.4	%	(16)	97.4	%		97.3	%		97.3	%		97.2	%
Transient RV sites		27,922			27,032			26,295			25,043			23,728
Sites for development(17)		10,312			9,443			9,676			10,025			10,130
% Communities age restricted		32.3	%		32.5	%		32.7	%		33.2	%		33.6	%

Marina Property Summary(a)
		9/30/2021			06/30/2021			3/31/2021			12/31/2020
FLORIDA
Properties		19			18			16			14
Total wet slips and dry storage spaces		4,493			4,186			3,837			3,585
RHODE ISLAND
Properties		12			11			11			11
Total wet slips and dry storage spaces		3,417			3,207			2,829			2,829
CONNECTICUT
Properties		11			11			11			11
Total wet slips and dry storage spaces		3,278			3,262			3,262			3,262
MASSACHUSETTS
Properties		9			9			9			7
Total wet slips and dry storage spaces		2,650			2,650			2,650			2,223
NEW YORK
Properties		8			8			8			8
Total wet slips and dry storage spaces		2,630			2,629			2,629			2,629
MARYLAND
Properties		8			8			8			8
Total wet slips and dry storage spaces		2,139			2,110			2,110			2,110
OTHER STATES
Properties		53			49			47			47
Total wet slips and dry storage spaces		26,252			23,389			22,851			22,851
TOTAL - MARINA PORTFOLIO
Properties		120			114			110			106
Total wet slips and dry storage spaces		44,859			41,433			40,168			39,489

^(a) Total wet slips and dry storage spaces are adjusted each quarter based on site configuration and usability.

Capital Improvements, Development and Acquisitions
(amounts in thousands except for *)

		Nine Months Ended								Year Ended								Year Ended
		September 30, 2021								December 31, 2020								December 31, 2019
		MH / RV				Marina				MH / RV				Marina				MH / RV
Recurring Capital Expenditures Average / Site*		$	258			$	259			$	265			N/A				$	345
Recurring Capital Expenditures(18)		$	31,484			$	10,292			$	31,398			$	2,074			$	30,382
Lot Modifications(19)		$	20,274			N/A				$	29,414			N/A				$	22,837
Acquisitions(20)(a)		$	508,773			$	711,366			$	571,930			$	2,533,741			$	938,966
Expansion and Development(21)		$	135,758			$	9,866			$	248,146			$	—			$	281,808
Growth Projects(22)		$	19,900			$	37,771			$	28,315			$	—			$	9,638

(a)  Acquisitions includes intangibles and goodwill included in purchase price.

Operating Statistics for MH and Annual RVs

Locations		Resident Move-outs			Net Leased Sites(5)				New Home Sales			Pre-owned Home Sales			Brokered Re-sales
Florida		1,851			572				153			177			1,415
Michigan		327			154				43			1,334			196
Ontario, Canada		526			180				93			6			420
Texas		278			233				71			344			69
Arizona		88			124				30			35			171
Indiana		46			31				7			220			13
Ohio		68			(2	)			1			109			15
California		100			22				23			8			109
Colorado		3			51				43			23			36
Connecticut		26			21				29			2			44
New York		90			25				10			7			9
New Hampshire		—			2				4			—			37
Maine		80			15				10			9			3
Other states		837			245				66			298			176
Nine Months Ended September 30, 2021		4,320			1,673				583			2,572			2,713

Total For Year Ended		Resident Move-outs			Net Leased Sites(5)			New Home Sales			Pre-owned Home Sales			Brokered Re-sales
2020		5,365			2,505			570			2,296			2,557
2019		4,139			2,674			571			2,868			2,231

Percentage Trends		Resident Move-outs			Resident Re-sales
2021 TTM		2.9	%		8.3	%
2020		3.3	%		6.9	%
2019		2.6	%		6.6	%

Footnotes and Definitions

(1)   Investors in and analysts following the real estate industry utilize funds from operations ("FFO"), net operating income ("NOI"), and earnings before interest, tax, depreciation and amortization ("EBITDA") as supplemental performance measures. The Company believes that FFO, NOI, and EBITDA are appropriate measures given their wide use by and relevance to investors and analysts. Additionally, FFO, NOI, and EBITDA are commonly used in various ratios, pricing multiples, yields and returns and valuation calculations used to measure financial position, performance and value.

• FFO, reflecting the assumption that real estate values rise or fall with market conditions, principally adjusts for the effects of generally accepted accounting principles ("GAAP") depreciation and amortization of real estate assets.
• NOI provides a measure of rental operations that does not factor in depreciation, amortization and non-property specific expenses such as general and administrative expenses.
• EBITDA provides a further measure to evaluate ability to incur and service debt and to fund dividends and other cash needs.

FFO is defined by the National Association of Real Estate Investment Trusts ("NAREIT") as GAAP net income (loss), excluding gains (or losses) from sales of depreciable operating property, plus real estate related depreciation and amortization, real estate related impairments, and after adjustments for nonconsolidated partnerships and joint ventures. FFO is a non-GAAP financial measure that management believes is a useful supplemental measure of the Company's operating performance. By excluding gains and losses related to sales of previously depreciated operating real estate assets, impairment and excluding real estate asset depreciation and amortization (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO provides a performance measure that, when compared period-over-period, reflects the impact to operations from trends in occupancy rates, rental rates, and operating costs, providing perspective not readily apparent from GAAP net income (loss). Management believes the use of FFO has been beneficial in improving the understanding of operating results of REITs among the investing public and making comparisons of REIT operating results more meaningful. The Company also uses FFO excluding certain gain and loss items that management considers unrelated to the operational and financial performance of our core business ("Core FFO"). The Company believes that Core FFO provides enhanced comparability for investor evaluations of period-over-period results.

The Company believes that GAAP net income (loss) is the most directly comparable measure to FFO. The principal limitation of FFO is that it does not replace GAAP net income (loss) as a performance measure or GAAP cash flow from operations as a liquidity measure. Because FFO excludes significant economic components of GAAP net income (loss) including depreciation and amortization, FFO should be used as a supplement to GAAP net income (loss) and not as an alternative to it. Further, FFO is not intended as a measure of a REIT's ability to meet debt principal repayments and other cash requirements, nor as a measure of working capital. FFO is calculated in accordance with the Company's interpretation of standards established by NAREIT, which may not be comparable to FFO reported by other REITs that interpret the NAREIT definition differently.

NOI is derived from revenues minus property operating expenses and real estate taxes. NOI is a non-GAAP financial measure that the Company believes is helpful to investors as a supplemental measure of operating performance because it is an indicator of the return on property investment and provides a method of comparing property performance over time. The Company uses NOI as a key measure when evaluating performance and growth of particular properties and / or groups of properties. The principal limitation of NOI is that it excludes depreciation, amortization, interest expense and non-property specific expenses such as general and administrative expenses, all of which are significant costs. Therefore, NOI is a measure of the operating performance of the properties of the Company rather than of the Company overall.

The Company believes that GAAP net income (loss) is the most directly comparable measure to NOI. NOI should not be considered to be an alternative to GAAP net income (loss) as an indication of the Company's financial performance or GAAP cash flow from operating activities as a measure of the Company's liquidity; nor is it indicative of funds available for the Company's cash needs, including its ability to make cash distributions. Because of the inclusion of items such as interest, depreciation, and amortization, the use of GAAP net income (loss) as a performance measure is limited as these items may not accurately reflect the actual change in market value of a property, in the case of depreciation and in the case of interest, may not necessarily be linked to the operating performance of a real estate asset, as it is often incurred at a parent company level and not at a property level.

EBITDA as defined by NAREIT (referred to as "EBITDAre") is calculated as GAAP net income (loss), plus interest expense, plus income tax expense, plus depreciation and amortization, plus or minus losses or gains on the disposition of depreciated property (including losses or gains on change of control), plus impairment write-downs of depreciated property and of investments in nonconsolidated affiliates caused by a decrease in value of depreciated property in the affiliate, and adjustments to reflect the entity's share of EBITDAre of nonconsolidated affiliates. EBITDAre is a non-GAAP financial measure that the Company uses to evaluate its ability to incur and service debt, fund dividends and other cash needs and cover fixed costs. Investors utilize EBITDAre as a supplemental measure to evaluate and compare investment quality and enterprise value of REITs. The Company also uses EBITDAre excluding certain gain and loss items that management considers unrelated to measurement of the Company's performance on a basis that is independent of capital structure ("Recurring EBITDA").

The Company believes that GAAP net income (loss) is the most directly comparable measure to EBITDAre. EBITDAre is not intended to be used as a measure of the Company's cash generated by operations or its dividend-paying capacity, and should therefore not replace GAAP net income (loss) as an indication of the Company's financial performance or GAAP cash flow from operating, investing and financing activities as measures of liquidity.

(2)   Same Community results reflect constant currency for comparative purposes. Canadian currency figures in the prior comparative period have been translated at 2021 average exchange rates.

(3)   The MH and RV blended occupancy for 2021 is derived from 119,584 developed sites, of which 117,300 were occupied. The adjusted MH and RV blended occupancy percentage is derived from 118,641 developed sites, of which 117,300 were occupied. The number of developed sites excludes RV transient sites and over 900 recently completed but vacant MH expansion sites.

The adjusted MH and RV blended occupancy percentage for 2020 has been adjusted to reflect incremental period-over-period growth from newly rented expansion sites and the conversion of transient RV sites to annual RV sites.

(4)   The effect of certain anti-dilutive convertible securities is excluded from these items.

(5)   Revenue producing site net gains do not include occupied sites acquired during that year.

(6)   Other expense, net was as follows (in thousands):

	Three Months Ended										Nine Months Ended
	September 30, 2021					September 30, 2020					September 30, 2021					September 30, 2020
Contingent consideration expense	$	(9,196	)			$	(2,724	)			$	(9,339	)			$	(2,890	)
Long term lease termination expense	—					(160		)			—					(433		)
Repair reserve on repossessed homes	(176		)			(627		)			(702		)			(1,567		)
Other expenses, net	$	(9,372	)			$	(3,511	)			$	(10,041	)			$	(4,890	)

(7)   Other acquisition related costs represent the expenses incurred to bring recently acquired properties up to the Company's operating standards, including items such as tree trimming and painting costs that do not meet the Company's capitalization policy. These costs also include nonrecurring integration expenses associated with a new acquisition.

(8)   Other adjustments, net was as follows (in thousands):

	Three Months Ended									Nine Months Ended
	September 30, 2021				September 30, 2020					September 30, 2021				September 30, 2020
Contingent consideration expense	$	9,196			$	2,724				$	9,339			$	2,890
Long term lease termination expense	—				160					—				433
Deferred tax (benefit) / expense	1,155				(562		)			1,074				(804		)
RV rebranding non-recurring cost	1,092				—					1,092				—
deferred compensation amortization upon retirement	—				—					—				300
Other adjustments, net	$	11,443			$	2,322				$	11,505			$	2,819

(9)   Line of credit and other debt includes borrowings under the Company's $2.0 billion credit facility, a $12.0 million MH floor plan facility, and a $35.3 million unsecured term loan which had been secured prior to July 1, 2021.

(10)   Same Community results net $19.1 million and $18.3 million of certain utility revenue against the related utility expense in property operating and maintenance expense for the three months ended September 30, 2021 and 2020, respectively. Same Community results net $52.2 million and $47.3 million of utility revenue against the related utility expense in property operating and maintenance expense for the nine months ended September 30, 2021 and 2020, respectively.

(11)   Same Community supplies and repair expense excludes $0.4 million and $1.2 million for the three and nine months ended September 30, 2020, respectively, of expenses incurred for recently acquired properties to bring the properties up to the Company's operating standards, including items such as tree trimming and painting costs that do not meet the Company's capitalization policy.

(12)   Monthly base rent per site pertains to annual RV sites and excludes transient RV sites.

(13)   Calculated using actual results without rounding.

(14)   MH and RV acquisitions and other is comprised of 21 properties acquired in 2021, one property acquired in which the Company has an interest in, but does not operate in 2021, and five properties that the Company has an interest in, but does not operate in 2021, 23 properties acquired in 2020, two Florida Keys properties that require redevelopment as a result of damage sustained from Hurricane Irma in 2017, seven recently opened ground-up developments, two properties undergoing redevelopment, and other miscellaneous transactions and activity.

(15)   Includes MH and annual RV sites, and excludes transient RV sites, as applicable.

(16)   As of September 30, 2021, total portfolio MH occupancy was 96.6 percent inclusive of the impact of nearly 1,200 recently constructed but vacant MH expansion sites, and annual RV occupancy was 100.0 percent.

(17)   Total sites for development were comprised of approximately 73.1 percent for expansion, 20.8 percent for greenfield development and 6.1 percent for redevelopment.

(18)   Property recurring capital expenditures are necessary to maintain asset quality, including purchasing and replacing assets used to operate the communities, resorts and marinas. Recurring capital expenditures at our MH and RV properties include items such as: major road, driveway, pool improvements; clubhouse renovations; adding or replacing street lights; playground equipment; signage; maintenance facilities; manager housing and property vehicles. Recurring capital expenditures at our marinas include items such as: dredging, dock repairs and improvements, and equipment maintenance and upgrades. The minimum capitalized amount is five hundred dollars.

(19)   Lot modification capital expenditures are incurred to modify the foundational structures required to set a new home after a previous home has been removed. These expenditures are necessary to create a revenue stream from a new site renter and often improve the quality of the community. Other lot modification expenditures include land improvements added to annual RV sites to aid in the conversion of transient RV guests to annual contracts.

(20)   Capital expenditures related to acquisitions represent the purchase price of existing operating properties (including marinas) and land parcels to develop expansions or new properties. These costs for the nine months ended September 30, 2021 include $54.3 million at our MH and RV properties and $69.9 million at our marina properties. Expenditures consist of capital improvements identified during due diligence that are necessary to bring the communities, resorts and marinas to the Company's operating standards. For the years ended December 31, 2020 and 2019, these costs were $40.6 million and $50.7 million, respectively. These include items such as: upgrading clubhouses; landscaping; new street light systems; new mail delivery systems; pool renovation including larger decks, heaters, and furniture; new maintenance facilities; lot modifications; and new signage including main signs and internal road signs. These are considered acquisition costs and although identified during due diligence, often require 24 to 36 months after closing to complete.

(21)   Expansion and development expenditures consist primarily of construction costs such as roads, activities, and amenities, and costs necessary to complete home and RV site improvements, such as driveways, sidewalks and landscaping at our MH communities and RV resorts. Expenditures also include costs to rebuild after damage has been incurred at MH, RV or marina properties.

(22)   Growth projects consist of revenue generating or expense reducing activities at MH communities, RV resorts and marinas. This includes, but is not limited to, utility efficiency and renewable energy projects, site, slip or amenity upgrades such as the addition of a garage, shed or boat lift, and other special capital projects that substantiate an incremental rental increase.

Certain financial information has been revised to reflect reclassifications in prior periods to conform to current period presentation.

Attachment

• Press Release and Supplemental Package 2021.09.30

Source: Sun Communities, Inc.