Sun Communities, Inc. Reports 2021 Second Quarter Results

NEWS RELEASE

July 26, 2021

Sun Communities, Inc. Reports 2021 Second Quarter Results

Southfield, MI, July 26, 2021 (GLOBE NEWSWIRE) — Sun Communities, Inc. (NYSE: SUI) (the “Company”), a real estate investment trust (“REIT”) that owns and operates, or has an interest in, manufactured housing (“MH”) communities, recreational vehicle (“RV”) resorts and marinas, (collectively, the “properties”), today reported its second quarter results for 2021.

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

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

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

Non-GAAP Financial Measures and Portfolio Performance

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

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

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

OPERATING HIGHLIGHTS

Portfolio Occupancy

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

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

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

Same Community⁽²⁾ Results

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

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

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

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

Home Sales

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

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

Marina Results

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

PORTFOLIO ACTIVITY

Acquisitions and Dispositions

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

Property Name

Property Type

Sites, Wet Slips and Dry Storage Spaces

Development Sites

State / Province

Total Purchase Price (in millions)

Month Acquired

ThemeWorld RV Resort

RV

148

—

FL

$

25.0

April

Sylvan Glen Estates(a)

MH

476

—

MI

24.0

April

Shelter Island Boatyard

Marina

55

N/A

CA

10.0

May

Lauderdale Marine Center

Marina

202

N/A

FL

340.2

May

Apponaug Harbor(b)

Marina

378

N/A

RI

6.6

June

Cabrillo Isle(c)

Marina

483

N/A

CA

46.9

June

Marathon Marina

Marina

147

N/A

FL

19.1

June

Subtotal

1,889

—

471.8

Acquisitions subsequent to quarter end

Allen Harbor

Marina

165

N/A

RI

4.0

July

Cisco Grove Campground & RV

RV

18

407

CA

6.6

July

Four Leaf Portfolio(d)

MH

2,714

171

MI / IN

215.0

July

Harborage Yacht Club

Marina

300

N/A

FL

22.0

July

Subtotal

3,197

578

247.6

Total acquisitions

5,086

578

$

719.4

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

^(b) Combined with an existing adjacent marina.

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

^(d) Contains nine MH communities.

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

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

Construction Activity

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

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

BALANCE SHEET, CAPITAL MARKETS ACTIVITY AND OTHER ITEMS

Debt

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

Senior Unsecured Notes

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

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

Credit Agreement

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

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

Public Equity Offering

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

At the Market Offering Sales Agreements

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

2021 GUIDANCE

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

				Previous Range			Revised Range
				FY 2021E			FY 2021E			3Q 2021E
Basic earnings per share				$1.68 – $1.84			$2.24 – $2.36			$0.90 – $0.96
Core FFO(1) per fully diluted Share				$5.92 – $6.08			$6.25 – $6.37			$2.00 – $2.06
	1Q21			2Q21			3Q21			4Q21
Seasonality of Core FFO(1) per fully diluted Share	20.0	%		28.5	%		32.1	%		19.4	%

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

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

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

The estimates and assumptions presented above represent a range of possible outcomes and may differ materially from actual results. The estimates and assumptions are forward looking based on the Company’s current assessment of economic and market conditions, as well as other risks outlined below under the caption “Cautionary Statement Regarding Forward-Looking Statements.”

EARNINGS CONFERENCE CALL

A conference call to discuss second quarter results will be held on Tuesday, July 27, 2021 at 11:00 A.M. (ET). To participate, call toll-free (877) 407-9039. Callers outside the U.S. or Canada can access the call at (201) 689-8470. A replay will be available following the call through August 10, 2021 and can be accessed toll-free by calling (844) 512-2921 or (412) 317-6671. The Conference ID number for the call and the replay is 13720116. The conference call will be available live on Sun Communities’ website located at www.suncommunities.com. The replay will also be available on the website.

Sun Communities, Inc. is a REIT that, as of June 30, 2021, owned, operated, or had an interest in a portfolio of 569 developed MH, RV and marina properties comprising over 153,300 developed sites and nearly 41,300 wet slips and dry storage spaces in 39 states and Ontario, Canada.

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

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

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

• outbreaks of disease, including the COVID-19 pandemic, and related stay-at-home orders, quarantine policies and restrictions on travel, trade and business operations;
• changes in general economic conditions, the real estate industry and the markets in which the Company operates;
• difficulties in the Company’s ability to evaluate, finance, complete and integrate acquisitions, developments and expansions successfully;
• the Company’s liquidity and refinancing demands;
• the Company’s ability to obtain or refinance maturing debt;
• the Company’s ability to maintain compliance with covenants contained in its debt facilities and its senior unsecured notes;
• availability of capital;
• changes in foreign currency exchange rates, including between the U.S. dollar and each of the Canadian and Australian dollars;
• the Company’s ability to maintain rental rates and occupancy levels;
• the Company’s ability to maintain effective internal control over financial reporting and disclosure controls and procedures;
• increases in interest rates and operating costs, including insurance premiums and real property taxes;
• risks related to natural disasters such as hurricanes, earthquakes, floods and wildfires;
• general volatility of the capital markets and the market price of shares of the Company’s capital stock;
• the Company’s ability to maintain its status as a REIT;
• changes in real estate and zoning laws and regulations;
• legislative or regulatory changes, including changes to laws governing the taxation of REITs;
• litigation, judgments or settlements;
• competitive market forces;
• the ability of purchasers of manufactured homes and boats to obtain financing; and
• the level of repossessions by manufactured home lenders.

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

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

Investor Information

RESEARCH COVERAGE
Firm		Analyst		Phone		Email
Bank of America Merrill Lynch		Joshua Dennerlein		(646) 855-1681		joshua.dennerlein@baml.com
Berenberg Capital Markets		Keegan Carl		(646) 949-9052		keegan.carl@berenberg-us.com
BMO Capital Markets		John Kim		(212) 885-4115		johnp.kim@bmo.com
Citi Research		Michael Bilerman		(212) 816-1383		michael.bilerman@citi.com
		Nicholas Joseph		(212) 816-1909		nicholas.joseph@citi.com
Evercore ISI		Steve Sakwa		(212) 446-9462		steve.sakwa@evercoreisi.com
		Samir Khanal		(212) 888-3796		samir.khanal@evercoreisi.com
Green Street Advisors		John Pawlowski		(949) 640-8780		jpawlowski@greenstreetadvisors.com
Robert W. Baird & Co.		Wesley Golladay		(216) 737-7510		wgolladay@rwbaird.com
RBC Capital Markets		Brad Heffern		(512) 708-6311		brad.heffern@rbccm.com
UBS		Michael Goldsmith		(212) 713-2951		michael.goldsmith@ubs.com
Wells Fargo		Todd Stender		(562) 637-1371		todd.stender@wellsfargo.com
INQUIRIES
Sun Communities welcomes questions or comments from stockholders, analysts, investment managers, media, or any prospective investor. Please address all inquiries to our Investor Relations department.
At Our Website		www.suncommunities.com
By Email		investorrelations@suncommunities.com
By Phone		(248) 208-2500

Portfolio Overview
(As of June 30, 2021)

Financial and Operating Highlights
(amounts in thousands, except for *)

	Quarter Ended
	6/30/2021				3/31/2021				12/31/2020				9/30/2020				6/30/2020
Financial Information
Total revenues	$	603,863			$	442,015			$	384,265			$	400,514			$	303,266
Net income	$	120,849			$	27,941			$	9,818			$	89,756			$	63,355
Net income attributable to Sun Communities Inc. common stockholders	$	110,770			$	24,782			$	7,586			$	81,204			$	58,910
Basic earnings per share*	$	0.98			$	0.23			$	0.07			$	0.83			$	0.61
Diluted earnings per share*	$	0.98			$	0.23			$	0.07			$	0.83			$	0.61
Cash distributions declared per common share*	$	0.83			$	0.83			$	0.79			$	0.79			$	0.79
Recurring EBITDA(1)	$	268,225			$	190,830			$	168,527			$	199,321			$	148,650
FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities(1)(4)	$	198,017			$	135,925			$	110,849			$	165,209			$	118,092
Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities(1)(4)	$	209,620			$	141,036			$	124,872			$	162,624			$	110,325
FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities(1)(4) per share – fully diluted*	$	1.70			$	1.22			$	1.03			$	1.63			$	1.20
Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities(1)(4) per share – fully diluted*	$	1.80			$	1.26			$	1.16			$	1.60			$	1.12
Balance Sheet
Total assets	$	12,040,990			$	11,454,209			$	11,206,586			$	8,335,717			$	8,348,659
Total debt	$	4,311,175			$	4,417,935			$	4,757,076			$	3,340,613			$	3,390,771
Total liabilities	$	5,099,563			$	5,101,512			$	5,314,879			$	3,791,922			$	3,845,308

	Quarter Ended
	6/30/2021			3/31/2021			12/31/2020			9/30/2020			6/30/2020
Operating Information*
Properties	569			562			552			432			426
Manufactured home sites	97,448			96,876			96,688			95,209			94,232
Annual RV sites	28,807			28,441			27,564			26,817			26,240
Transient RV sites	27,032			26,295			25,043			23,728			22,360
Total sites	153,287			151,612			149,295			145,754			142,832
Marina wet slips and dry storage spaces	41,275			38,753			38,152			N/A			N/A
MH occupancy	96.7	%		96.5	%		96.6	%		96.4	%		96.5	%
Annual RV occupancy	100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Blended MH and annual RV occupancy	97.4	%		97.3	%		97.3	%		97.2	%		97.3	%
New home sales	227			149			156			155			140
Pre-owned home sales	931			686			626			555			471
Total home sales	1,158			835			782			710			611

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

Consolidated Balance Sheets
(amounts in thousands)

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

Statements of Operations – Quarter to Date and Year to Date Comparison
(In thousands, except per share amounts) (Unaudited)

	Three Months Ended																			Six Months Ended
	June 30, 2021					June 30, 2020					Change					% Change				June 30, 2021					June 30, 2020					Change					% Change
Revenues
Real property (excluding transient)	$	328,907				$	225,413				$	103,494				45.9		%		$	626,984				$	453,415				$	173,569				38.3		%
Real property – transient	76,998					25,714					51,284					199.4		%		109,534					56,061					53,473					95.4		%
Home sales	81,848					38,530					43,318					112.4		%		134,047					79,117					54,930					69.4		%
Service, retail, dining and entertainment	106,452					7,700					98,752					N/M				157,064					12,803					144,261					N/M
Interest	2,719					2,635					84					3.2		%		5,350					4,985					365					7.3		%
Brokerage commissions and other, net	6,939					3,274					3,665					111.9		%		12,899					7,187					5,712					79.5		%
Total Revenues	603,863					303,266					300,597					99.1		%		1,045,878					613,568					432,310					70.5		%
Expenses
Property operating and maintenance	129,961					70,804					59,157					83.6		%		233,514					140,638					92,876					66.0		%
Real estate tax	23,202					17,723					5,479					30.9		%		45,610					34,899					10,711					30.7		%
Home costs and selling	58,763					32,051					26,712					83.3		%		100,353					66,090					34,263					51.8		%
Service, retail, dining and entertainment	78,585					7,242					71,343					N/M				124,016					13,924					110,092					N/M
General and administrative	45,127					26,527					18,600					70.1		%		83,330					51,876					31,454					60.6		%
Catastrophic event-related charges, net	355					(566		)			921					162.7		%		2,769					40					2,729					N/M
Business combination, net	(201		)			—					(201		)			N/A				1,031					—					1,031					N/A
Depreciation and amortization	126,423					87,265					39,158					44.9		%		249,727					170,954					78,773					46.1		%
Loss on extinguishment of debt	8,108					1,930					6,178					320.1		%		8,108					5,209					2,899					55.7		%
Interest	37,681					31,428					6,253					19.9		%		77,198					63,844					13,354					20.9		%
Interest on mandatorily redeemable preferred OP units / equity	1,041					1,042					(1		)			(0.1	)	%		2,077					2,083					(6		)			(0.3	)	%
Total Expenses	509,045					275,446					233,599					84.8		%		927,733					549,557					378,176					68.8		%
Income Before Other Items	94,818					27,820					66,998					240.8		%		118,145					64,011					54,134					84.6		%
Gain / (loss) on remeasurement of marketable securities	27,494					24,519					2,975					12.1		%		31,155					(4,128		)			35,283					N/M
Gain / (loss) on foreign currency translation	(264		)			10,374					(10,638		)			(102.5	)	%		(239		)			(7,105		)			6,866					(96.6	)	%
Other expense, net(6)	(660		)			(821		)			161					19.6		%		(1,759		)			(1,793		)			34					(1.9	)	%
Gain / (loss) on remeasurement of notes receivable	93					246					(153		)			(62.2	)	%		469					(1,866		)			2,335					N/M
Income from nonconsolidated affiliates	794					92					702					N/M				1,965					144					1,821					N/M
Gain / (loss) on remeasurement of investment in nonconsolidated affiliates	(115		)			1,132					(1,247		)			(110.2	)	%		(11		)			(1,059		)			1,048					(99.0	)	%
Current tax expense	(1,245		)			(119		)			(1,126		)			N/M				(1,016		)			(569		)			(447		)			78.6		%
Deferred tax benefit / (expense)	(66		)			112					(178		)			N/M				81					242					(161		)			(66.5	)	%
Net Income	120,849					63,355					57,494					90.7		%		148,790					47,877					100,913					210.8		%
Less: Preferred return to preferred OP units / equity	3,035					1,584					1,451					91.6		%		5,899					3,154					2,745					87.0		%
Less: Income attributable to noncontrolling interests	7,044					2,861					4,183					146.2		%		7,339					1,899					5,440					286.5		%
Net Income Attributable to Sun Communities, Inc.	$	110,770				$	58,910				$	51,860				88.0		%		$	135,552				$	42,824				$	92,728				216.5		%
Weighted average common shares outstanding – basic	112,082					95,859					16,223					16.9		%		110,007					94,134					15,873					16.9		%
Weighted average common shares outstanding – diluted	112,082					95,860					16,222					16.9		%		112,593					94,525					18,068					19.1		%
Basic earnings per share	$	0.98				$	0.61				$	0.37				60.7		%		$	1.22				$	0.45				$	0.77				171.1		%
Diluted earnings per share	$	0.98				$	0.61				$	0.37				60.7		%		$	1.22				$	0.45				$	0.77				171.1		%

N/M = Percentage change is not meaningful.

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

Outstanding Securities – As of June 30, 2021
	Number of Units / Shares Outstanding		Conversion Rate*		If Converted(1)		Issuance Price Per Unit*			Annual Distribution Rate*
Non-convertible Securities
Common shares	115,889		N/A		N/A		N/A			$3.32^
Convertible Securities
Common OP units	2,569		1.0000		2,569		N/A			Mirrors common shares distributions
Series A-1 preferred OP units	288		2.4390		703		$	100		6.00	%
Series A-3 preferred OP units	40		1.8605		75		$	100		4.50	%
Series C preferred OP units	306		1.1100		340		$	100		5.00	%
Series D preferred OP units	489		0.8000		391		$	100		4.00	%
Series E preferred OP units	90		0.6897		62		$	100		5.25	%
Series F preferred OP units	90		0.6250		56		$	100		3.00	%
Series G preferred OP units	241		0.6452		155		$	100		3.20	%
Series H preferred OP units	581		0.6098		355		$	100		3.00	%
Series I preferred OP units	922		0.6098		562		$	100		3.00	%
Series J preferred OP units	240		0.6061		145		$	100		2.85	%

^ Annual distribution is based on the last quarterly distribution annualized.

(1)  Calculation may yield minor differences due to fractional shares paid in cash to the stockholder at conversion.

Capitalization – As of June 30, 2021
Equity		Shares			Share Price*				Total
Common shares		115,889			$	171.40			$	19,863,375
Common OP units		2,569			$	171.40			440,327
Subtotal		118,458							$	20,303,702
Preferred OP units as converted		2,844			$	171.40			487,462
Total diluted shares outstanding		121,302							$	20,791,164
Debt
Secured debt									$	3,457,734
Unsecured debt									853,441
Total debt									$	4,311,175
Total Capitalization									$	25,102,339

Reconciliations to Non-GAAP Financial Measures

Reconciliation of Net Income Attributable to Sun Communities, Inc. Common Stockholders to FFO⁽¹⁾
(amounts in thousands except for per share data)

	Three Months Ended										Six Months Ended
	June 30, 2021					June 30, 2020					June 30, 2021					June 30, 2020
Net Income Attributable to Sun Communities, Inc. Common Stockholders	$	110,770				$	58,910				$	135,552				$	42,824
Adjustments
Depreciation and amortization	126,227					87,296					249,303					171,048
Depreciation on nonconsolidated affiliates	31					19					61					19
(Gain) / loss on remeasurement of marketable securities	(27,494		)			(24,519		)			(31,155		)			4,128
(Gain) / loss on remeasurement of investment in nonconsolidated affiliates	115					(1,132		)			11					1,059
(Gain) / loss on remeasurement of notes receivable	(93		)			(246		)			(469		)			1,866
Income attributable to noncontrolling interests	5,033					1,942					4,886					1,646
Preferred return to preferred OP units	478					—					958					1,000
Interest expense on Aspen preferred OP units	514					—					1,028					—
Gain on disposition of assets, net	(17,564		)			(4,178		)			(25,719		)			(9,740		)
FFO Attributable to Sun Communities, Inc. Common Stockholders and Dilutive Convertible Securities(1)(4)	$	198,017				$	118,092				$	334,456				$	213,850
Adjustments
Business combination expense and other acquisition related costs(7)	2,284					504					4,237					889
Loss on extinguishment of debt	8,108					1,930					8,108					5,209
Catastrophic event-related charges, net	364					(567		)			2,778					39
Loss of earnings – catastrophic event-related	—					—					200					300
(Gain) / loss on foreign currency translation	264					(10,374		)			239					7,105
Other expense, net	517					552					1,233					854
Deferred tax (benefits) / expenses	66					188					(81		)			58
Core FFO Attributable to Sun Communities, Inc. Common Stockholders and Dilutive Convertible Securities(1)(4)	$	209,620				$	110,325				$	351,170				$	228,304
Weighted average common shares outstanding – basic	112,082					95,859					110,007					94,134
Add
Common stock issuable upon conversion of stock options	—					1					—					1
Restricted stock	580					305					372					390
Common OP units	2,577					2,448					2,586					2,430
Common stock issuable upon conversion of certain preferred OP units	1,174					—					1,180					815
Weighted Average Common Shares Outstanding – Fully Diluted	116,413					98,613					114,145					97,770
FFO Attributable to Sun Communities, Inc. Common Stockholders and Dilutive Convertible Securities(1)(4) Per Share – Fully Diluted	$	1.70				$	1.20				$	2.93				$	2.19
Core FFO Attributable to Sun Communities, Inc. Common Stockholders and Dilutive Convertible Securities(1)(4) Per Share – Fully Diluted	$	1.80				$	1.12				$	3.08				$	2.34

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

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

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

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

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

Non-GAAP and Other Financial Measures

Debt Analysis
(amounts in thousands)

	Quarter Ended
	6/30/2021				3/31/2021				12/31/2020				9/30/2020				6/30/2020
Debt Outstanding
Mortgage term loans	$	3,418,097			$	3,430,420			$	3,444,967			$	3,191,380			$	3,205,507
Collateralized term loan	39,637				42,510				45,016				47,546				50,006
Total secured debt	3,457,734				3,472,930				3,489,983				3,238,926				3,255,513
Senior unsecured notes	591,688				—				—				—				—
Line of credit and other debt	191,841				875,093				1,197,181				31,775				65,346
Preferred Equity – Sun NG Resorts – mandatorily redeemable	35,249				35,249				35,249				35,249				35,249
Preferred OP units – mandatorily redeemable	34,663				34,663				34,663				34,663				34,663
Total unsecured debt	853,441				945,005				1,267,093				101,687				135,258
Total debt	$	4,311,175			$	4,417,935			$	4,757,076			$	3,340,613			$	3,390,771
% Fixed / Floating
Fixed	94.7		%		79.3		%		74.0		%		97.6		%		96.6		%
Floating	5.3		%		20.7		%		26.0		%		2.4		%		3.4		%
Total	100.0		%		100.0		%		100.0		%		100.0		%		100.0		%
Weighted Average Interest Rates
Mortgage term loans	3.78		%		3.78		%		3.78		%		3.88		%		3.88		%
Collateralized term loan	1.30		%		1.29		%		1.31		%		1.31		%		1.31		%
Senior unsecured notes	2.70		%		—		%		—		%		—		%		—		%
Line of credit and other debt(8)	0.93		%		1.77		%		2.11		%		1.34		%		2.57		%
Preferred Equity – Sun NG Resorts – mandatorily redeemable	6.00		%		6.00		%		6.00		%		6.00		%		6.00		%
Preferred OP units – mandatorily redeemable	5.93		%		5.93		%		5.93		%		5.93		%		5.93		%
Total average	3.52		%		3.39		%		3.37		%		3.86		%		3.86		%
Debt Ratios
Net Debt / Recurring EBITDA(1) (TTM)	5.1				6.1				6.9				5.0				4.8
Net Debt / Enterprise Value	16.8		%		19.7		%		21.4		%		18.3		%		17.8		%
Net Debt / Gross Assets	29.6		%		31.8		%		35.5		%		31.6		%		29.7		%
Coverage Ratios
Recurring EBITDA(1) (TTM) / Interest	5.6				5.0				4.9				4.8				4.5
Recurring EBITDA(1) (TTM) / Interest + Pref. Distributions + Pref. Stock Distribution	5.5				4.8				4.8				4.6				4.4

Maturities / Principal Amortization Next Five Years	2021				2022				2023				2024				2025
Mortgage term loans
Maturities	$	—			$	82,155			$	185,619			$	315,330			$	50,529
Principal amortization	30,083				61,411				60,788				57,344				53,933
Collateralized term loan	4,621				10,000				25,016				—				—
Line of credit and other debt	—				1,509				—				—				190,332
Preferred Equity – Sun NG Resorts – mandatorily redeemable	—				—				—				33,428				1,821
Preferred OP units – mandatorily redeemable	—				—				—				27,373				—
Total	$	34,704			$	155,075			$	271,423			$	433,475			$	296,615
Weighted average rate of maturities	—		%		4.46		%		4.08		%		4.47		%		4.04		%

Same Community⁽²⁾
(amounts in thousands)

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

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

Same Community⁽²⁾ (continued)

	As of
	June 30, 2021				June 30, 2020				Change					% Change
Other Information
Number of properties	405				405				—
MH occupancy	97.4		%
RV occupancy	100.0		%
MH & RV blended occupancy(3)	98.0		%
Adjusted MH occupancy(3)	98.5		%
Adjusted RV occupancy(3)	100.0		%
Adjusted MH & RV blended occupancy(3)	98.8		%		97.2		%		1.6			%
Sites available for development	7,246				7,553				(307		)
Monthly base rent per site – MH	$	601			$	583			$	18				3.1%(12)
Monthly base rent per site – RV(11)	$	527			$	504			$	23				4.7%(12)
Monthly base rent per site – Total(11)	$	584			$	565			$	19				3.3%(12)

Marina Summary
(amounts in thousands except for statistical data)

		Three Months Ended				Six Months Ended
		June 30, 2021				June 30, 2021
Financial Information
Revenues
Real property (excluding transient)		$	61,914			$	108,020
Real property – transient		4,257				5,125
Other		3,671				5,319
Total Operating		69,842				118,464
Expenses
Property Operating(a)		28,246				51,821
Real Property NOI		41,596				66,643
Service, retail, dining and entertainment
Service, retail, dining and entertainment revenue		82,238				126,592
Service, retail, dining and entertainment expense		61,017				99,026
Service, Retail, Dining and Entertainment NOI		21,221				27,566
Marina NOI		$	62,817			$	94,209
Other Information – Marinas						June 30, 2021
Number of properties(b)						114
Total wet slips and dry storage						41,275

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

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

MH and RV Acquisitions and Other Summary⁽¹³⁾
(amounts in thousands except for statistical data)

		Three Months Ended			Six Months Ended
		June 30, 2021			June 30, 2021
Financial Information
Revenues
Real property (excluding transient)		$	8,522		$	15,820
Real property – transient		21,259			27,525
Other income		2,767			3,122
Total Operating		32,548			46,467
Expenses
Property Operating(a)		15,915			25,475
Real Property NOI		$	16,633		$	20,992
Other Information – MH and RVs					June 30, 2021
Number of properties					50
Occupied sites					5,474
Developed sites					6,322
Occupancy %					86.6		%
Transient sites					8,122

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

Home Sales Summary
(amounts in thousands except for *)

	Three Months Ended															Six Months Ended
	June 30, 2021				June 30, 2020				Change				% Change			June 30, 2021				June 30, 2020				Change				% Change
Financial Information
New Homes
New home sales	$	34,761			$	19,206			$	15,555			81.0	%		$	57,733			$	34,802			$	22,931			65.9	%
New home cost of sales	28,269				15,707				12,562				80.0	%		46,943				28,317				18,626				65.8	%
Gross Profit – new homes	6,492				3,499				2,993				85.5	%		10,790				6,485				4,305				66.4	%
Gross margin % – new homes	18.7		%		18.2		%		0.5		%					18.7		%		18.6		%		0.1		%
Average selling price – new homes*	$	153,132			$	137,186			$	15,946			11.6	%		$	153,545			$	134,371			$	19,174			14.3	%
Pre-owned Homes
Pre-owned home sales	$	47,087			$	19,324			$	27,763			143.7	%		$	76,314			$	44,315			$	31,999			72.2	%
Pre-owned home cost of sales	25,945				13,474				12,471				92.6	%		44,529				30,896				13,633				44.1	%
Gross Profit – pre-owned homes	21,142				5,850				15,292				261.4	%		31,785				13,419				18,366				136.9	%
Gross margin % – pre-owned homes	44.9		%		30.3		%		14.6		%					41.7		%		30.3		%		11.4		%
Average selling price – pre-owned homes*	$	50,577			$	41,028			$	9,549			23.3	%		$	47,195			$	39,744			$	7,451			18.7	%
Total Home Sales
Revenue from home sales	$	81,848			$	38,530			$	43,318			112.4	%		$	134,047			$	79,117			$	54,930			69.4	%
Cost of home sales	54,214				29,181				25,033				85.8	%		91,472				59,213				32,259				54.5	%
Home selling expenses	4,549				2,870				1,679				58.5	%		8,881				6,877				2,004				29.1	%
Home Sales NOI(1)	$	23,085			$	6,479			$	16,606			256.3	%		$	33,694			$	13,027			$	20,667			158.6	%
Statistical Information
New home sales volume*	227				140				87				62.1	%		376				259				117				45.2	%
Pre-owned home sales volume*	931				471				460				97.7	%		1,617				1,115				502				45.0	%
Total home sales volume*	1,158				611				547				89.5	%		1,993				1,374				619				45.1	%

Rental Program Summary
(amounts in thousands except for *)

	Three Months Ended															Six Months Ended
	June 30, 2021				June 30, 2020				Change				% Change			June 30, 2021				June 30, 2020				Change					% Change
Financial Information
Revenues
Home rent	$	17,060			$	14,968			$	2,092			14.0	%		$	34,082			$	30,436			$	3,646				12.0		%
Site rent	18,649				18,591				58				0.3	%		37,766				36,598				1,168					3.2		%
Total	35,709				33,559				2,150				6.4	%		71,848				67,034				4,814					7.2		%
Expenses
Rental Program operating and maintenance	4,561				4,425				136				3.1	%		9,785				9,248				537					5.8		%
Rental Program NOI(1)	$	31,148			$	29,134			$	2,014			6.9	%		$	62,063			$	57,786			$	4,277				7.4		%
Other Information
Number of sold rental homes*	281				122				159				130.3	%		492				356				136					38.2		%
Number of occupied rentals, end of period*																10,951				11,785				(834		)			(7.1	)	%
Investment in occupied rental homes, end of period																$	601,798			$	621,327			$	(19,529	)			(3.1	)	%
Weighted average monthly rental rate, end of period*																$	1,076			$	1,018			$	58				5.7		%

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
		6/30/2021			3/31/2021			12/31/2020			9/30/2020			6/30/2020
FLORIDA
Properties		129			128			128			127			125
MH & Annual RV Developed sites(14)		40,171			40,011			39,803			39,517			39,241
Occupied MH & Annual RV(14)		39,402			39,283			39,063			38,743			38,453
MH & Annual RV Occupancy %(14)		98.1	%		98.2	%		98.1	%		98.0	%		98.0	%
Transient RV sites		5,895			5,823			6,011			5,993			5,547
Sites for development		1,414			1,497			1,497			1,427			1,427
MICHIGAN
Properties		75			74			74			74			72
MH & Annual RV Developed sites(14)		29,600			29,092			29,086			29,086			27,901
Occupied MH & Annual RV(14)		28,671			28,145			28,109			28,033			27,191
MH & Annual RV Occupancy %(14)		96.9	%		96.7	%		96.6	%		96.4	%		97.5	%
Transient RV sites		509			541			546			546			572
Sites for development		1,182			1,182			1,182			1,182			1,182
CALIFORNIA
Properties		36			36			35			34			32
MH & Annual RV Developed sites(14)		6,736			6,734			6,675			6,372			6,364
Occupied MH & Annual RV(14)		6,613			6,609			6,602			6,290			6,272
MH & Annual RV Occupancy %(14)		98.2	%		98.1	%		98.9	%		98.7	%		98.6	%
Transient RV sites		2,416			2,418			2,231			2,236			1,978
Sites for development		127			127			373			373			264
TEXAS
Properties		25			24			24			24			23
MH & Annual RV Developed sites(14)		7,947			7,928			7,766			7,659			7,641
Occupied MH & Annual RV(14)		7,731			7,671			7,572			7,427			7,289
MH & Annual RV Occupancy %(14)		97.3	%		96.8	%		97.5	%		97.0	%		95.4	%
Transient RV sites		1,835			1,773			1,810			1,917			1,590
Sites for development		1,194			1,275			1,378			1,378			565
ONTARIO, CANADA
Properties		16			16			15			15			15
MH & Annual RV Developed sites(14)		4,302			4,199			4,090			4,067			3,980
Occupied MH & Annual RV(14)		4,302			4,199			4,090			4,067			3,980
MH & Annual RV Occupancy %(14)		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Transient RV sites		870			964			966			920			1,007
Sites for development		1,525			1,525			1,525			1,593			1,593
CONNECTICUT
Properties		16			16			16			16			16
MH & Annual RV Developed sites(14)		1,901			1,897			1,897			1,898			1,898
Occupied MH & Annual RV(14)		1,757			1,746			1,739			1,736			1,735
MH & Annual RV Occupancy %(14)		92.4	%		92.0	%		91.7	%		91.5	%		91.4	%
Transient RV sites		104			108			108			107			107
Sites for development		—			—			—			—			—
ARIZONA
Properties		14			14			14			13			13
MH & Annual RV Developed sites(14)		4,401			4,391			4,323			4,274			4,259
Occupied MH & Annual RV(14)		4,116			4,101			4,030			3,957			3,932
MH & Annual RV Occupancy %(14)		93.5	%		93.4	%		93.2	%		92.6	%		92.3	%
Transient RV sites		1,260			1,270			1,337			1,386			1,401
Sites for development		—			—			—			—			—
MAINE
Properties		13			13			13			7			7
MH & Annual RV Developed sites(14)		2,204			2,190			2,190			1,092			1,074
Occupied MH & Annual RV(14)		2,127			2,119			2,121			1,089			1,069
MH & Annual RV Occupancy %(14)		96.5	%		96.8	%		96.8	%		99.7	%		99.5	%
Transient RV sites		792			805			805			819			837
Sites for development		30			30			30			30			30
INDIANA
Properties		12			12			12			11			11
MH & Annual RV Developed sites(14)		3,087			3,087			3,087			3,087			3,087
Occupied MH & Annual RV(14)		2,970			2,961			2,950			2,957			2,961
MH & Annual RV Occupancy %(14)		96.2	%		95.9	%		95.6	%		95.8	%		95.9	%
Transient RV sites		1,089			1,089			1,089			534			534
Sites for development		277			277			277			277			277
COLORADO
Properties		10			10			10			10			10
MH & Annual RV Developed sites(14)		2,453			2,453			2,453			2,453			2,441
Occupied MH & Annual RV(14)		2,420			2,395			2,380			2,365			2,327
MH & Annual RV Occupancy %(14)		98.7	%		97.6	%		97.0	%		96.4	%		95.3	%
Transient RV sites		987			962			962			930			574
Sites for development		1,225			1,250			1,250			1,282			1,566
NEW HAMPSHIRE
Properties		10			10			10			10			10
MH & Annual RV Developed sites(14)		1,777			1,776			1,777			1,833			1,827
Occupied MH & Annual RV(14)		1,769			1,769			1,767			1,822			1,816
MH & Annual RV Occupancy %(14)		99.5	%		99.6	%		99.4	%		99.4	%		99.4	%
Transient RV sites		602			456			460			404			410
Sites for development		151			151			151			151			151
NEW YORK
Properties		10			10			9			9			9
MH & Annual RV Developed sites(14)		1,457			1,452			1,419			1,414			1,403
Occupied MH & Annual RV(14)		1,428			1,415			1,380			1,371			1,358
MH & Annual RV Occupancy %(14)		98.0	%		97.5	%		97.3	%		97.0	%		96.8	%
Transient RV sites		1,684			1,689			1,422			900			911
Sites for development		371			371			371			371			371
OHIO
Properties		9			9			9			9			9
MH & Annual RV Developed sites(14)		2,797			2,797			2,790			2,790			2,778
Occupied MH & Annual RV(14)		2,770			2,760			2,755			2,758			2,736
MH & Annual RV Occupancy %(14)		99.0	%		98.7	%		98.7	%		98.9	%		98.5	%
Transient RV sites		128			128			135			135			147
Sites for development		22			22			22			22			22
OTHER STATES
Properties		80			80			77			73			74
MH & Annual RV Developed sites(14)		17,422			17,310			16,896			16,484			16,578
Occupied MH & Annual RV(14)		16,934			16,796			16,394			15,977			16,046
MH & Annual RV Occupancy %(14)		97.2	%		97.0	%		97.0	%		96.9	%		96.8	%
Transient RV sites		8,861			8,269			7,161			6,901			6,745
Sites for development		1,925			1,969			1,969			2,044			2,294
TOTAL – MH AND RV PORTFOLIO
Properties		455			452			446			432			426
MH & Annual RV Developed sites(14)		126,255			125,317			124,252			122,026			120,472
Occupied MH & Annual RV(14)		123,010			121,969			120,952			118,592			117,165
MH & Annual RV Occupancy %(14)		97.4	%	(15)	97.3	%		97.3	%		97.2	%		97.3	%
Transient RV sites		27,032			26,295			25,043			23,728			22,360
Sites for development(16)		9,443			9,676			10,025			10,130			9,742
% Communities age restricted		32.5	%		32.7	%		33.2	%		33.6	%		34.0	%

Marina Property Summary(a)
		6/30/2021			03/31/2021			12/31/2020
FLORIDA
Properties		18			16			14
Total wet slips and dry storage spaces		4,186			3,837			3,585
CONNECTICUT
Properties		11			11			11
Total wet slips and dry storage spaces		3,262			3,262			3,262
RHODE ISLAND
Properties		11			11			11
Total wet slips and dry storage spaces		3,207			2,829			2,829
MASSACHUSETTS
Properties		9			9			7
Total wet slips and dry storage spaces		2,650			2,650			2,223
NEW YORK
Properties		8			8			8
Total wet slips and dry storage spaces		2,629			2,629			2,629
MARYLAND
Properties		8			8			8
Total wet slips and dry storage spaces		2,110			2,110			2,110
OTHER STATES
Properties		49			47			47
Total wet slips and dry storage spaces		23,231			22,693			22,693
TOTAL – MARINA PORTFOLIO
Properties		114			110			106
Total wet slips and dry storage spaces		41,275			40,010			39,331

^(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 *)

	Recurring Capital Expenditures Average / MH & RV Site*			Recurring Capital Expenditures Average / Marina Site*			Recurring Capital Expenditures – MH / RV(17)			Recurring Capital Expenditures – Marina(17)			Lot Modifications(18)			Acquisitions(19)			Expansion and Development(20)			Growth Projects(21)
YTD 2021	$	178		$	149		$	21,697		$	5,909		$	16,945		$	692,344		$	90,380		$	36,357
2020	$	265		N/A			$	31,398		$	2,074		$	29,789		$	3,105,296		$	248,146		$	28,315
2019	$	345		N/A			$	30,382		N/A			$	31,135		$	930,668		$	281,808		$	9,638

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		1,251			319			116			126			972
Michigan		241			113			29			807			124
Ontario, Canada		471			121			43			5			221
Texas		177			159			44			213			39
Arizona		60			86			15			23			132
Indiana		34			20			5			147			9
Ohio		58			15			1			59			9
California		68			11			14			4			82
Colorado		1			40			34			16			21
Connecticut		19			18			20			2			25
New York		87			24			6			1			7
New Hampshire		—			2			4			—			22
Maine		73			6			6			6			1
Other states		702			163			39			208			110
Six Months Ended June 30, 2021		3,242			1,097			376			1,617			1,774

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		2.1	%		8.1	%
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 is derived from 119,933 developed sites, of which 117,536 were occupied. 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. The adjusted MH and RV blended occupancy percentage for 2021 is derived from 118,907 developed sites, of which 117,536 were occupied. The number of developed sites excludes RV transient sites and over 1,000 recently completed but vacant MH expansion sites.

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

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

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

	Three Months Ended										Six Months Ended
	June 30, 2021					June 30, 2020					June 30, 2021					June 30, 2020
Foreign currency remeasurement income / (loss)	$	181				$	(195	)			$	159				$	(415	)
Contingent consideration expense	(72		)			(84		)			(143		)			(166		)
Long term lease termination expense	—					(273		)			—					(273		)
GTSC repair reserve	(144		)			(269		)			(525		)			(939		)
Non-cash lease amortization expense	(625		)			—					(1,250		)			—
Other expenses, net	$	(660	)			$	(821	)			$	(1,759	)			$	(1,793	)

(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)   Line of credit and other debt includes borrowings under the Company’s $2.0 billion New Credit Facility and a $12.0 million MH floor plan facility. The effective interest rate on the MH floor plan facility was 7.0 percent for the quarters ended June 30 and March 31, 2021, and 6.0 percent for the quarters ended December 31, September 30 and June 30, 2020. However, the Company pays no interest if the floor plan balance is repaid within 60 days.

(9)   Same Community results net $16.8 million and $14.3 million of certain utility revenue against the related utility expense in property operating and maintenance expense for the three months ended June 30, 2021 and 2020, respectively. Same Community results net $33.2 million and $29.1 million of utility revenue against the related utility expense in property operating and maintenance expense for the six months ended June 30, 2021 and 2020, respectively.

(10)   Same Community supplies and repair expense excludes $0.5 million and $0.9 million for the three and six months ended June 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.

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

(12)   Calculated using actual results without rounding.

(13)   MH and RV acquisitions and other is comprised of eight properties acquired 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, one property undergoing redevelopment, four properties previously classified as held for sale and other miscellaneous transactions and activity.

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

(15)   As of June 30, 2021, total portfolio MH occupancy was 96.7 percent inclusive of the impact of nearly 1,200 recently constructed but vacant MH expansion sites, and annual RV occupancy was 100.0 percent.

(16)   Total sites for development were comprised of approximately 77.9 percent for expansion, 19.8 percent for greenfield development and 2.3 percent for redevelopment.

(17)   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.

(18)   Lot modification capital expenditures are MH expenditures necessary to improve the asset quality of the community. These costs are incurred when an existing older home moves out, and the site is prepared for a new home, more often than not, a multi-sectional home. These activities, which are mandated by strict manufacturer’s installation requirements and state building code, include items such as new foundations, driveways, and utility upgrades.

(19)   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 six months ended June 30, 2021 include $70.7 million 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; 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.

(20)   Expansion and development expenditures consist primarily of construction costs and costs necessary to complete home and RV site improvements, such as driveways, sidewalks and landscaping at our MH communities and RV resorts.

(21)   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

• Exhibit 99.1 Press Release and Supplemental Package 2021.06.30