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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8‑K


CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934


Date of Report: September 12, 2016
(Date of earliest event reported)

SUN COMMUNITIES, INC.
(Exact name of registrant as specified in its charter)

Maryland
 
1-12616
 
38-2730780
(State or other jurisdiction of incorporation)
 
(Commission File Number)
 
(IRS Employer Identification No.)

27777 Franklin Rd.
 
 
Suite 200
 
 
Southfield, Michigan
 
48034
(Address of Principal Executive Offices)
 
(Zip Code)


(248) 208-2500
(Registrant’s telephone number, including area code)



Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))





Item 7.01
Regulation FD Disclosure
Attached as Exhibit 99.1, and incorporated by reference, to this report is an investor presentation of Sun Communities, Inc. that will be used at the Bank of America Merrill Lynch 2016 Global Real Estate Conference on Tuesday, September 13, 2016 and at the BMO Capital Markets 11th Annual North American Real Estate Conference on Monday, September 19, 2016. The presentation also will be posted on Sun Communities, Inc.'s website, www.suncommunities.com, on September 12, 2016.
The information contained in this Item 7.01 on Current Report on Form 8-K, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed to be “filed” for purposes of the United States Securities Exchange Act of 1934, as amended (the "Exchange Act").
This report contains various “forward-looking statements” within the meaning of the United States Securities Act of 1933, as amended, and the Exchange Act, and we intend that such forward-looking statements will be subject to the safe harbors created thereby. For this purpose, any statements contained in this filing 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" and similar expressions are intended to identify forward-looking statements, although not all forward looking statements contain these words. These forward-looking statements reflect our current views with respect to future events and financial performance, but involve known and unknown risks and uncertainties, both general and specific to the matters discussed in this filing. These risks and uncertainties may cause our 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 our Annual Report on Form 10-K for the year ended December 31, 2015 and our other filings with the SEC from time to time, such risks and uncertainties include:

•
changes in general economic conditions, the real estate industry and the markets in which we operate;
•
difficulties in our ability to evaluate, finance, complete and integrate acquisitions, developments and expansions successfully;
•
our liquidity and refinancing demands;
•
our ability to obtain or refinance maturing debt;
•
our ability to maintain compliance with covenants contained in our debt facilities;
•
availability of capital;
•
our ability to maintain rental rates and occupancy levels;
•
our failure 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;
•
general volatility of the capital markets and the market price of shares of our capital stock;
•
our failure to maintain our 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 manufactured home buyers to obtain financing; and
•
the level of repossessions by manufactured home lenders.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made. We undertake no obligation to publicly update or revise any forward-looking statements included or incorporated by reference into this filing, whether as a result of new information, future events, changes in our expectations or otherwise, except as required by law.




Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. All written and oral forward-looking statements attributable to us or persons acting on our behalf are qualified in their entirety by these cautionary statements.
Item 9.01
Financial Statements and Exhibits
(d)
Exhibits.
99.1
Investor Presentation





SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.


 
 
SUN COMMUNITIES, INC.

Dated: September 12, 2016
 
By:
/s/ Karen J. Dearing
 
 
 
Karen J. Dearing, Executive Vice President,
Chief Financial Officer, Secretary and Treasurer





EXHIBIT INDEX

Exhibit No.
 
Description
99.1
 
Investor Presentation



a201609investorpresentat
INVESTOR PRESENTATION SEPTEMBER 2016

 
FORWARD-LOOKING STATEMENTS This presentation has been prepared for informational purposes only from information supplied by Sun Communities, Inc. (the "Company") and from third-party sources indicated herein. Such third-party information has not been independently verified. The Company makes no representation or warranty, expressed or implied, as to the accuracy or completeness of such information. This presentation contains various “forward-looking statements” within the meaning of the United States Securities Act of 1933, as amended, and the United States Securities Exchange Act of 1934, as amended, and we intend that such forward-looking statements will be subject to the safe harbors created thereby. For this purpose, any statements contained in this presentation 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” and similar expressions are intended to identify forward-looking statements, although not all forward looking statements contain these words. These forward-looking statements reflect our current views with respect to future events and financial performance, but involve known and unknown risks and uncertainties, both general and specific to the matters discussed in this presentation. These risks and uncertainties may cause our 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 our Annual Report on Form 10-K for the year ended December 31, 2015, and our other filings with the Securities and Exchange Commission from time to time, such risks and uncertainties include:  changes in general economic conditions, the real estate industry and the markets in which we operate;  difficulties in our ability to evaluate, finance, complete and integrate acquisitions, developments and expansions successfully;  our liquidity and refinancing demands;  our ability to obtain or refinance maturing debt;  our ability to maintain compliance with covenants contained in our debt facilities;  availability of capital;  our failure 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;  general volatility of the capital markets and the market price of shares of our capital stock;  our failure to maintain our 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;  our ability to maintain rental rates and occupancy levels;  competitive market forces; and  the ability of manufactured home buyers to obtain financing and the level of repossessions by manufactured home lenders. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made. We undertake no obligation to publicly update or revise any forward-looking statements included in this presentation, whether as a result of new information, future events, changes in our expectations or otherwise, except as required by law. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. All written and oral forward-looking statements attributable to us or persons acting on our behalf are qualified in their entirety by these cautionary statements.

 
 Leading owner of premier manufactured housing and recreational vehicle communities  Cycle-tested organic growth  Proven consolidator of accretive portfolios  Enhancing growth through owned community expansions  Conservative balance sheet  Strategy-driven outperformance KEY HIGHLIGHTS 3 Jellystone Park of Western New York North Java, New York

 
SUN COMMUNITIES, INC. (NYSE: SUI) 4  Leading owner of premier manufactured home and recreational vehicle communities 227 manufactured housing only communities 26 manufactured housing and recreational vehicle communities 85 recreational vehicle only communities 5,032 1,523 713 149 1,370 24,513 3,026 1,277 916 1,186 2,913 3,401 549 1,652 684 237 673 418 1,150 404 413 976 226 2,335 473 7,526 43,109 4,587 324 5,382 338 communities consisting of ~117,000 sites across 29 states and Ontario 80,000 manufactured housing sites 37,137 recreational vehicle sites 20,638 annual / seasonal 16,499 transient SOURCE: COMPANY INFORMATION. REFER TO SUN COMMUNITIES, INC. FORM 10-Q AND SUPPLEMENTAL FOR THE QUARTER ENDED JUNE 30, 2016 FOR ADDITIONAL INFORMATION. As of June 30, 2016

 
5 HIGH QUALITY REAL ESTATE  91% of the communities are on or located within a day trip1 of a major body of water SOURCE: COMPANY INFORMATION. 1 WITHIN 200 MILES. 2 AVERAGE IS BASED ON THE TOTAL FROM THE SELECTED U.S. NATIONAL PARKS. 56% 36% 8% Atlantic Ocean/Gulf of Mexico Great Lakes Pacific Ocean  22% of the communities are located on an average of a 2.5 hour drive2 from selected U.S. National Parks Riptide Key Largo, Florida Trailside Seguin, Ontario Sherkston Shores Sherkston, Ontario 41% 14% 8% 9% 20% 8% Everglades National Park Grand Canyon National Park Great Smoky Mountains National Park Rocky Mountain National Park Shenandoah National Park Yosemite National Park

 
CONSISTENT ORGANIC GROWTH 6  Low annual resident turnover results in stability of income and occupancy  Strong and consistent rental growth creates a stable revenue stream  Occupancy gains are a function of Sun’s integrated platform, including leasing, sales, and financing SOURCE: COMPANY INFORMATION. REFER TO SUN COMMUNITIES, INC. FORM 10-K AND SUPPLEMENTAL FOR THE RESPECTIVE PERIODS ENDED SET FORTH ABOVE FOR ADDITIONAL INFORMATION. Same Community NOI (change %) Same Community Occupancy Monthly Same Community Rent (weighted average) 0.7% 3.1% 3.6% 5.5% 5.9% 7.7% 9.1% 2009 2010 2011 2012 2013 2014 2015 $404 $413 $425 $437 $445 $457 $472 2009 2010 2011 2012 2013 2014 2015 83.4% 84.3% 85.8% 86.7% 88.9% 93.2% 95.9% 2009 2010 2011 2012 2013 2014 2015 Palm Creek Golf & RV Resort Casa Grande, Arizona Reserve at Fox Creek Bullhead City, Arizona

 
STRONG INTERNAL GROWTH 7 SOURCE: CITI INVESTMENT RESEARCH, JULY, 2016. “REITS”- INCLUDES AN INDEX OF REITS ACROSS A VARIETY OF ASSET CLASSES INCLUDING SELF STORAGE, MIXED OFFICE, REGIONAL MALLS, SHOPPING CENTERS, MULTIFAMILY, STUDENT HOUSING, MANUFACTURED HOMES AND SPECIALTY.  SUN’s average same community NOI growth has exceeded REIT industry average by ~175 bps and apartment average by ~160 bps over a 15 year period -8% -6% -4% -2% 0% 2% 4% 6% 8% 10% 12% 2 Q 01 3 Q 01 4 Q 01 1 Q 02 2 Q 02 3 Q 02 4 Q 02 1 Q 03 2 Q 03 3 Q 03 4 Q 03 1 Q 04 2 Q 04 3 Q 04 4 Q 04 1 Q 05 2 Q 05 3 Q 05 4 Q 05 1 Q 06 2 Q 06 3 Q 06 4 Q 06 1 Q 07 2 Q 07 3 Q 07 4 Q 07 1 Q 08 2 Q 08 3 Q 08 4 Q 08 1 Q 09 2 Q 09 3 Q 09 4 Q 09 1 Q 10 2 Q 10 3 Q 10 4 Q 10 1 Q 11 2 Q 11 3 Q 11 4 Q 11 1 Q 12 2 Q 12 3 Q 12 4 Q 12 1 Q 13 2 Q 13 3 Q 13 4 Q 13 1 Q 14 2 Q 14 3 Q 14 4 Q 14 1 Q 15 2 Q 15 3 Q 15 4 Q 15 1 Q 16 2 Q 16 Sun Communities, Inc. Apartments Industry Average (2.5%) Sun's Average (4.3%) Apartment Average (2.7%) Same Community NOI (change %)

 
FAVORABLE REVENUE DRIVERS 8 Sun’s Percentage trends for manufactured homes and annual/seasonal RV’s No loss in revenue as home stays in the community Resident re-sales Home move-out 4.9% 5.1% 4.7% 4.9% 4.6% 5.0% 5.9% 2.8% 2.3% 2.3% 2.5% 2.6% 2.6% 2.0% 2009 2010 2011 2012 2013 2014 2015 Stable and growing financial results driven by low turnover:  The cost to move a home ranges between $4,000 and $10,000. This facilitates a low turnover of owner occupied sites  Tenure of our residents in our communities is ~14 years1  Tenure of homes in our communities is over 40 years1 1 SOURCE: COMPANY INFORMATION. 5 YEAR AVERAGE.

 
STRATEGIC ACQUISITIONS PROFESSIONAL OPERATIONAL MANAGEMENT CALL CENTER / DIGITAL MARKETING OUTREACH INCREASING MARKET RENT HOME SALES / RENTAL PROGRAM ADDING VALUE WITH EXPANSIONS REPOSITIONING WITH ADDITIONAL CAPEX SKILLED EXPENSE MANAGEMENT EXTRACTING VALUE FROM ACQUISITIONS 9

 
STRATEGIC ACQUISITIONS 10 2011 2012 2013 2014 2015 2016 136 communities 54,811 sites 173 communities 63,697 sites 188 communities 69,789 sites 217 communities 79,554 sites 231 communities 88,612 sites • Further strengthened the MH portfolio with the 6 community Rudgate acquisition. • Acquired Palm Creek, an irreplaceable age restricted asset. • 17 MH and 1 RV community Kentland acquisition growing the portfolio. • Geographic and RV diversification with 10 RV resort Morgan acquisition entering 5 new states. • Closed 1st phase of “ALL” 59 high quality, age-restricted community acquisition, strengthening and diversifying the portfolio. • Final closing of “ALL” acquisition further enhancing the portfolio. • Acquired, for the year, 34 MH communities and 4 RV resorts. SOURCE: COMPANY INFORMATION. REFER TO SUN COMMUNITIES, INC. FORM 10-K AND SUPPLEMENTAL FOR THE RESPECTIVE YEARS ENDED SET FORTH ABOVE FOR ADDITIONAL INFORMATION.  Since May 2011, Sun has acquired communities valued in excess of $4.3 billion, increasing its number of sites and communities by 146% and 148%, respectively 337 communities 117,137 sites • During H1 acquired 1 MH community and 2 RV resorts. • Acquired Carefree Communities, Inc. acquisition adding 103 MH and RV communities deepening Sun’s presence in key costal markets.

 
$28.9M $32.7M $35.6M YEAR 1 YEAR 2 YEAR 3 Revenue NOI 11 Acquisition Performance 2011 Acquisitions (26 COMMUNITIES) 2012 Acquisitions (11 COMMUNITIES) SOURCE: COMPANY INFORMATION. AS OF THE YEAR ENDED DECEMBER 31, 2015. New Point RV Resort New Point, Virginia Palm Creek Golf & RV Resort Casa Grande, Arizona Wildwood Community Sandwich, Illinois $36.4M $38.8M $42.0M YEAR 1 YEAR 2 YEAR 3 Revenue NOI 91.2% 95.1% 97.6% YEAR 1 YEAR 2 YEAR 3 Occupancy % 96.8% 97.1% 97.9% YEAR 1 YEAR 2 YEAR 3 Occupancy %  3 years post-acquisition

 
$11.0M $13.3M $14.6M YEAR 1 YEAR 2 YEAR 3 Revenue NOI 2013 Morgan Acquisition (10 PROPERTIES) SOURCE: COMPANY INFORMATION. AS OF THE YEAR ENDED DECEMBER 31, 2015. 1 INCLUDES PARTIAL YEAR 2016 BUDGET. ACQUISITION PERFORMANCE RV PORTFOLIO 12 1

 
ONTARIO, CANADA CAREFREE: KEY MARKET PENETRATION 13 4,888 189 757 15,909 5,032 92 398 307 With the Carefree acquisition, Sun has deepened its presence in key, high-barrier markets CAREFREE PROPERTY ADDITIONS1 SUN COMMUNITIES PROPERTIES 1 SOURCE: COMPANY INFORMATION. REFER TO SUN COMMUNITIES, INC. FORM 10-Q AND SUPPLEMENTAL FOR THE QUARTER ENDED JUNE 30, 2016 FOR ADDITIONAL INFORMATION Sherkston Shores Ontario, Canada Sunset Harbor Key West, Florida POST-TRANSACTION FL 43,109 36.8% TX 7,526 6.4% CA 5,382 4.6% ON 5,032 4.3% AZ 4,587 3.9% NJ 3,026 2.6% MA 713 0.6% NC 673 0.6% Other 47,089 40.2% TOTAL 117,137 100.0% Increased Age-restricted Portfolio by over 60%

 
EXPANSIONS:  Inventory of approximately 10,000 zoned and entitled sites available for expansion at 64 communities within 20 states and Ontario  Approximately 800 sites are expected to be developed by the end of 2016  A 100 site expansion at a $25,000 cost per site, that is leased up in a year (8 sites/month), results in an unlevered return of 13%-15%1  Expanding in communities with strong demand evidenced by occupancies >95%  Expansion lease-up is driven by sales, rental and relocation programs STRONG GROWTH AND ATTRACTIVE RETURNS SOURCE: COMPANY INFORMATION. REFER TO SUN COMMUNITIES, INC. FORM 10-Q AND SUPPLEMENTAL FOR THE PERIOD ENDED JUNE 30, 2016 FOR ADDITIONAL INFORMATION. 1 BASED ON MOST RECENT ESTIMATION OF DEVELOPMENT COSTS AND EXPENSES AND ASSUMING A 6% CAP RATE EXITING IN FIVE YEARS. 14 Friendly Village Simi Simi Valley, California

 
EXPANSION OPPORTUNITIES SUPPORTED BY RENTAL PROGRAM 15 12.6% 13.5% 13.6% 14.0% 15.7% 15.6% 13.5% 70.8% 70.9% 71.7% 73.3% 74.0% 77.1% 81.6% 2009 2010 2011 2012 2013 2014 2015 Rental Occupancy Core Portfolio Occupancy 83.4% 84.3% 85.3% 87.3% 89.7% 92.6% 95.0% SOURCE: SUN’S DECEMBER 31, 2015 SUPPLEMENT 1 OPERATING EXPENSES INCLUDE REPAIRS AND REFURBISHMENT, TAXES AND INSURANCE, MARKETING, AND COMMISSIONS. Rental Program All-in 5 Year Unleveraged IRR: $42,000 Initial investment in new home Weighted average monthly rental rate $865 x 12 = $10,380 (3% annual increases) Monthly operating expenses1 $250 x 12 = $3,000 (2% annual increases) End of 5 year period sell the home and recoup > 95% of original invoice price  All-in 5 year unlevered IRR is 15% -16% DRIVES OCCUPANCY  SHOWCASES OUR COMMUNITIES  KEY ONBOARDING AND CONVERSION TOOL Luxury Rental, Sherkston Shores Ontario, Canada

 
CONSERVATIVE BALANCE SHEET 16  Balance sheet supports growth strategy  Strong interest coverage  Reduced leverage through recent ATM and September equity offerings  Anticipates further delevering over time through EBITDA contribution and earnings growth SOURCE: COMPANY INFORMATION. REFER TO SUN COMMUNITIES, INC. FORM 10-K AND SUPPLEMENTAL FOR THE RESPECTIVE YEAR ENDED AS WELL AS FORM 10-Q AND SUPPLEMENTAL FOR THE QUARTER ENDED JUNE 30, 2016 FOR ADDITIONAL INFORMATION. 1 THE COVERAGE RATIOS ARE CALCULATED USING TRAILING 12 MONTHS EBITDA FOR THE PERIOD ENDED JUNE 30, 2016 WHICH EXCLUDES SIGNIFICANT FORWARD EBITDA CONTRIBUTION FROM CAREFREE COMMUNITIES. SUBSEQUENT TO QUARTER END, THE COMPANY HAS RAISED APPROXIMATELY $330 MILLION THROUGH ITS ATM AND UNDERWRITTEN EQUITY OFFERING. 2 TOTAL ENTERPRISE VALUE INCLUDES COMMON SHARES OUTSTANDING (PER SUPPLEMENTAL DATA PACKAGE), OP UNITS AND PREFERRED OP UNITS, AS CONVERTED, OUTSTANDING AT THE END OF EACH RESPECTIVE PERIOD. 61.5% 50.4% 45.8% 34.8% 34.0% 36.6% 2011 2012 2013 2014 2015 TTM 2016 9.7x 8.4x 7.2x 7.3x 6.6x 9.1x 2011 2012 2013 2014 2015 TTM 2016 2.4x 2.4x 2.7x 3.0x 3.1x 3.1x 2011 2012 2013 2014 2015 TTM 2016 76.9% 84.7% 76.9% 90.8% 92.0% 84.5% 2011 2012 2013 2014 2015 2016 Net Debt / Total Enterprise Value2 Net Debt / Adjusted EBITDA1 Fixed Debt Percentage AS OF JUNE 30TH AS OF JUNE 30TH AS OF JUNE 30TH AS OF JUNE 30TH

 
MORTGAGE DEBT MATURITY PROFILE 17 SOURCE: COMPANY INFORMATION. REFER TO SUN COMMUNITIES, INC. FORM 10-Q AND SUPPLEMENTAL FOR THE QUARTER ENDED JUNE 30, 2016 FOR ADDITIONAL INFORMATION. IN THOUSANDS, AS OF JUNE 30, 2016. Sun’s annual mortgage maturities average 4% over the next 5 years WEIGHTED AVERAGE INTEREST RATE CMBS $ 587,085 5.28% Fannie Mae 1,109,800 4.37% Freddie Mac 196,269 4.03% Life Companies 898,876 3.88% Total 2,792,030 4.38% PRINCIPAL OUTSTANDING1 YE 2016 YE 2017 YE 2018 YE 2019 YE 2020 Commercial Mortgage-backed Securities Fannie Mae Freddie Mac Life Companies $75.7M $146.3M $99.9M $115.7M $109.9M

 
STRATEGY DRIVEN OUTPERFORMANCE 18 Sun’s – 5 Year’s Total Return Percentage1 1 SOURCE: SNL. TOTAL RETURN CALCULATION ASSUMES DIVIDEND REINVESTMENT 2 SOURCE: SNL. SNL U.S. REIT EQUITY : INCLUDES ALL PUBLICLY TRADED (NYSE, NYSE MKT, NASDAQ, OTC) EQUITY REITS IN SNL'S COVERAGE UNIVERSE. -50 0 50 100 150 200 SUI SNL U.S. REIT Equity S&P 500 Sun’s – 10 Year’s Total Return Percentage1 +169.79 +82.28 +77.02 -100 0 100 200 300 400 500 SUI SNL U.S. REIT Equity S&P 500 +450.35 +104.65 +114.05 2 2  Sun has significantly outperformed many major REIT and broader market indices over the last ten years

 
 Leading owner of premier manufactured housing and recreational vehicle communities  Cycle-tested organic growth  Proven consolidator of accretive portfolios  Enhancing growth through owned community expansions  Conservative balance sheet  Strategy-driven outperformance KEY HIGHLIGHTS 19

 
APPENDIX

 
RECENT HIGHLIGHTS: Q2 2016 SOURCE: COMPANY INFORMATION. REFER TO SUN COMMUNITIES, INC. FORM 10-Q AND SUPPLEMENTAL FOR THE QUARTER ENDED JUNE 30, 2016 FOR ADDITIONAL INFORMATION. 1 EXCLUDING CERTAIN ITEMS.  Funds From Operations was $0.851 per diluted share and OP unit for the three months ended June 30, 2016  Home sales increased by 30.2% as compared to the second quarter of 2015  Revenue producing sites increased by 501 sites for the quarter bringing total portfolio occupancy to 96.1%  Same community Net Operating Income increased by 6.9% as compared to the three months ended June 30, 2015  Closed the $1.68 billion Carefree Communities, Inc. acquisition, an 103 community portfolio of MH and RV communities concentrated in Florida, California and Ontario, Canada Appendix 1

 
CONSISTENT NOI GROWTH Appendix 2  Manufactured housing is one of the most recession resistant sectors of the housing and commercial real estate sectors and has consistently outperformed multi-family in same site NOI growth since 20001 1 SOURCE: SNL.COM. AS OF JUNE 30, 2016. ASSUMES $100.00 NOI STARTING POINT FOR ALL SECTORS. $90 $110 $130 $150 $170 $190 $210 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 SUI Manufactured Housing Apartment Industrial Mall Office Strip Mall Self-Storage

 
Manufactured Housing vs. Multi-Family Sun’s Manufactured Homes VS.  Sun’s manufactured homes provide nearly 15% more space at over 30% less cost per square foot RENT    ~$8601 per month Multi-Family Housing ~$1,1002 per month SQUARE FOOTAGE PRICE ~1,250 sq. ft. ~1,1002 sq. ft. $0.69 per sq. ft. $1.00 per sq. ft. 1 SOURCE: COMPANY INFORMATION. REFER TO SUN COMMUNITIES, INC. FORM 10-K AND SUPPLEMENTAL FOR THE YEAR ENDED DECEMBER 31, 2015 FOR ADDITIONAL INFORMATION. 2 SOURCE: THE RENTPATH NETWORK. REPRESENTS AVERAGE RENT FOR A 2 BEDROOM APARTMENT IN MAJOR METROPOLITAN AREAS SUN OPERATES IN AS OF FEBRUARY 2016. Appendix 3

 
Manufactured Housing vs. Single Family 1 SOURCE: MANUFACTURED HOUSING INSTITUTE, QUICK FACTS: “TRENDS AND INFORMATION ABOUT THE MANUFACTURED HOUSING INDUSTRY, 2016.” REPRESENTS AVERAGE 2 BEDROOM HOUSEHOLD IN MAJOR METROPOLITAN AREAS SUN OPERATES IN AS OF JUNE 2016. 2 SOURCE: US CENSUS BUREAU - 2010-2014 AMERICAN COMMUNITY SURVEY 5-YEAR ESTIMATES. $54,900 REPRESENTS THE MEDIAN HOUSEHOLD INCOME IN MAJOR METROPOLITAN AREAS SUN OPERATES IN. Single-family Homes Manufactured Homes  Average cost of Single Family1 is $360,600 or roughly 7 years median income  The average single family home costs over 5x the price of a manufactured home  Sun’s communities offer affordable options in attractive locations  Average cost of a new Manufactured Home is $68,000 or roughly 1 years median income Appendix 4 $62,800 $60,500 $62,200 $64,000 $65,300 $68,000 Manufactured $272,900 $267,900 $292,200 $324,500 $345,800 $360,600 $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 Single-family Portion of purchase price attributable to land Median Household Income2 2010 2011 2012 2013 2014 2015 Single-family1 vs Manufactured 4.3x 4.4x 4.7x 5.1x 5.3x 5.3x