Real Property Revenue Increased 13.8%, Year-over-Year

Net Loss per Diluted Share of $0.24

Core FFO per Share of $1.23 Exceeded Midpoint of Guidance by 4.7%

Total Same Property NOI Grew 6.7%, Exceeding Internal Expectations

Strong Demand and Effective Expense Management Drove Outperformance

Same Property Adjusted Occupancy for MH and RV Increased 190 Basis Points, Year-over-Year

Solid Transient-to-Annual RV Conversions of 524 Sites

Reiterating Full-Year Core FFO per Share Guidance for 2023 of $7.22 - $7.42

Expecting Total Same Property NOI Growth of 5.0% - 6.0%

Southfield, MI, April 26, 2023 (GLOBE NEWSWIRE) -- Sun Communities, Inc. (NYSE: SUI) (the "Company" or "SUI"), a real estate investment trust ("REIT") that owns and operates, or has an interest in, manufactured housing ("MH") and recreational vehicle ("RV") communities and marinas (collectively, the "properties"), today reported its first quarter results for 2023.

Financial Results for the Quarter Ended March 31, 2023

• For the quarter ended March 31, 2023, net loss attributable to common shareholders was $30.1 million, or $0.24 per diluted share, compared to net income attributable to common shareholders of $0.7 million, or $0.01 per diluted share, for the same period in 2022.
  
  

Non-GAAP Financial Measures

• Core Funds from Operations ("Core FFO") for the quarter ended March 31, 2023, was $1.23 per common share and dilutive convertible securities ("Share"), as compared to $1.34 for the same period in 2022.
  
  
• Same Property Net Operating Income ("NOI") increased by 6.7% for the quarter ended March 31, 2023, as compared to the corresponding period in 2022.
  
  

"We are pleased with the start to the year, delivering first quarter results which exceeded our expectations. The sustained demand for manufactured housing, RV vacationing and marinas is evident in the 6.7% same property NOI growth in the quarter," said Gary A. Shiffman, Chairman, President and CEO. "During the quarter, we added over 800 revenue producing sites across our manufactured home and RV communities and delivered over 330 development and expansion sites. We also further enhanced our balance sheet by raising nearly $600 million of long-term, fixed rate debt, the proceeds from which we used to pay down variable rate borrowings. We remain focused on building a stream of long-term, durable revenue and are optimistic in our outlook for 2023."

OPERATING HIGHLIGHTS

North America Portfolio Occupancy

• Total MH and annual RV occupancy was 96.9% at March 31, 2023, as compared to 97.5% at March 31, 2022.
  
  
• During the quarter ended March 31, 2023, the number of MH and annual RV revenue producing sites increased by 802 sites, as compared to an increase of 670 sites during the corresponding period in 2022, a 19.7% increase.
  
  
• Transient-to-annual RV site conversions totaled 524 sites during the first quarter of 2023 and account for 65.3% of the revenue producing site gains.
  
  

Same Property Results

For the properties owned and operated by the Company since at least January 1, 2022, the following table reflects the percentage changes, by segment and in total, for the quarter ended March 31, 2023:

Same Property adjusted blended occupancy for MH and RV increased to 98.6% at March 31, 2023, from 96.7% at March 31, 2022, an increase of 190 basis points.

INVESTMENT ACTIVITY

Acquisitions

During the quarter ended March 31, 2023 the Company acquired one MH community and one marina in the United States ("U.S.") for an aggregate purchase price of $107.0 million. Refer to page 13 for additional details.

Development and Expansion Activities

During the quarter ended March 31, 2023, the Company:

• Delivered over 200 sites at three ground-up development properties.
  
  
• Expanded our existing communities by over 130 sites.
  
  
• Invested $34.9 million to acquire three land parcels located in the U.S. and UK for the potential development of nearly 1,250 sites.
  
  

BALANCE SHEET, CAPITAL MARKETS ACTIVITY AND OTHER ITEMS

Debt

As of March 31, 2023, the Company had $7.5 billion in debt outstanding with a weighted average interest rate of 3.9% and a weighted average maturity of 7.4 years. At March 31, 2023, the Company's net debt to trailing twelve-month Recurring EBITDA ratio was 6.1 times.

During the quarter ended March 31, 2023, the Company completed the following financing activities:

• Entered into a mortgage term loan of $85.0 million. The loan matures on February 13, 2026 and has a fixed interest rate of 5.0%.
  
  
• Issued $400.0 million of senior unsecured notes with an interest rate of 5.7% and a 10-year term due January 15, 2033.
  
  
• Entered into two additional mortgage term loans totaling $99.1 million. The loans mature on April 1, 2030 and April 1, 2033 and have a weighted average interest rate of 5.72%.
  
  

In all three instances, the Company used the proceeds to repay borrowings outstanding under its senior credit facility.

2023 GUIDANCE

Updating Full-Year and Establishing Second Quarter 2023 Guidance

The Company is updating full-year 2023 and establishing second quarter 2023 guidance for diluted EPS and Core FFO per Share as follows:

^(a) Other adjustments include all other categories presented in the table that reconciles Net income attributable to SUI common shareholders to Core FFO on page 6.
^(b) The Company's updated guidance translates forecasted results from operations in the UK using the relevant exchange rate in effect provided in the 2023 Guidance Assumptions table presented below. The impact of fluctuations in Canadian and Australian foreign currency rates on revised and initial guidance are not material.

The Company's updated full-year guidance reflects changes in the following underlying assumptions, and updated total Same Property NOI growth of 5.0% - 6.0% for the full year includes 3.5% - 4.8% total Same Property NOI growth during the second quarter ending June 30, 2023.

^(a) UK NOI from real property is included in Total Portfolio NOI from real property.
^(b) The amounts in the table reflect constant currency, as currency figures included within the 2022 actual amounts have been translated at the assumed exchange rate used for 2023 guidance.
^(c) Total Same Property results net $101.1 million of utility revenue for 2022 actual results and $107.7 million for 2023 guidance against the related utility expense in property operating expenses.
^(d) 2022 actual results exclude $1.3 million of expense incurred at recently acquired properties to bring them up to the Company's standards. The improvements included items such as tree trimming and painting costs that do not meet the Company's capitalization policy.
^(e) FFO from home sales in North America is net of home selling expenses and includes the gross profit from new and certain pre-owned home sales. Gross profit from pre-owned home sales of depreciated homes is excluded.

The estimates and assumptions presented above represent a range of possible outcomes and may differ materially from actual results. These estimates include contributions from all acquisitions, dispositions and capital markets activity completed through April 26, 2023, and the effect of a property disposition under contract expected to close during the second quarter 2023. These estimates exclude all other prospective acquisitions, dispositions and capital markets activity. The estimates and assumptions are forward-looking based on the Company's current assessment of economic and market conditions and are subject to the other risks outlined below under the caption Cautionary Statement Regarding Forward-Looking Statements.

EARNINGS CONFERENCE CALL

A conference call to discuss first quarter results will be held on Thursday, April 27, 2023 at 11:00 A.M. (ET). To participate, call toll-free at (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 May 11, 2023 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 13736832. The conference call will be available live on the Company's website located at www.suncommunities.com. The replay will also be available on the website.

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 (the "Securities Act"), and the Securities Exchange Act of 1934, as amended (the "Exchange Act"), 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 document 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 and uncertainties, both general and specific to the matters discussed in this document, some of which are beyond the Company's control. These risks and uncertainties 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 described under "Risk Factors" contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2022, 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 and related restrictions on business operations;
• Changes in general economic conditions, including inflation, deflation and energy costs, the real estate industry and the markets within 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 unsecured notes;
• Availability of capital;
• Changes in foreign currency exchange rates, including between the U.S. dollar and each of the Canadian dollar, Australian dollar and Pound sterling;
• 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 estate taxes;
• Risks related to natural disasters such as hurricanes, earthquakes, floods, droughts and wildfires;
• General volatility of the capital markets and the market price of shares of the Company's capital stock;
• The Company's ability to maintain its status as a REIT;
• Changes in real estate and zoning laws and regulations;
• Legislative or regulatory changes, including changes to laws governing the taxation of REITs;
• Litigation, judgments or settlements;
• Competitive market forces;
• The ability of purchasers of manufactured homes and boats to obtain financing; and
• The level of repossessions by manufactured home and boat lenders.

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

Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company 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 the Company's behalf are qualified in their entirety by these cautionary statements.

Company Overview and Investor Information

The Company

Established in 1975, Sun Communities, Inc. became a publicly owned corporation in December 1993. The Company is a fully integrated REIT listed on the New York Stock Exchange under the symbol: SUI. As of March 31, 2023, the Company owned, operated, or had an interest in a portfolio of 671 developed MH, RV and Marina properties comprising approximately 179,700 developed sites and approximately 47,990 wet slips and dry storage spaces in the U.S., the UK and Canada.

For more information about the Company, please visit www.suncommunities.com.

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

^(a)  Excludes the effects of certain anti-dilutive convertible securities.

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

^(c)  Revenue producing site net gains do not include occupied sites acquired during the year.

Portfolio Overview as of March 31, 2023

Consolidated Balance Sheets
(amounts in millions)

Consolidated Statements of Operations
(amounts in millions, except for per share amounts)

^(a) Refer to Definitions and Notes for additional information.

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

N/M = Percentage change is not meaningful.

N/A = Percentage change is not applicable.

Reconciliation of Net Income / (Loss) Attributable to SUI Common Shareholders to Core FFO
(amounts in millions, except for per share data)

^(a) Refer to Definitions and Notes for additional information.

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

Reconciliation of Net Income / (Loss) Attributable to SUI Common Shareholders to NOI
(amounts in millions)

^(a) Refer to Definitions and Notes for additional information.

Reconciliation of Net Income / (Loss) Attributable to SUI Common Shareholders to Recurring EBITDA
(amounts in millions)

^(a) Refer to Definitions and Notes for additional information.

Real Property Operations - Total Portfolio
(amounts in millions, except statistical information)

^(a) MH annual sites included 9,520 and 9,470 rental homes in the Company's Rental Program during the quarter ended March 31, 2023 and 2022, respectively.

^(b) RV transient for the quarter ended March 31, 2023 includes 3,260 of UK sites.

Real Property Operations - Same Property Portfolio^(a)
(amounts in millions, except for statistical information)

^(a) Refer to the Definitions and Notes for additional information.

^(b) Same Property results for the Company's MH and RV properties reflect constant currency for comparative purposes. Canadian currency figures in the prior comparative period have been translated at the average exchange rate during the quarter ended March 31, 2023 of $0.7396 USD per Canadian dollar.

^(c) The Company nets utility revenues (which include utility reimbursement revenues from residents) against related expenses. Refer to Definitions and Notes for more detail.

^(d) Percentages are calculated based on unrounded numbers.

^(e) Total Same Property operating expenses consist of the following components for the periods shown (in millions) and exclude amounts invested into recently acquired properties to bring them up to the Company's standards:

Real Property Operations - Same Property Portfolio^(a) (Continued)

^(a) Refer to Definitions and Notes for additional information.

^(b) Same Property adjusted blended occupancy for MH and RV combined increased to 98.6% at March 31, 2023, from 96.7% at March 31, 2022. The 190 basis point increase was driven by MH expansion fills and the conversion of transient RV sites to annual sites.

^(c) Calculated using actual results without rounding.

^(d) Occupied rental program sites in Same Property are included in total sites.

Home Sales Summary
(amounts in millions, except for *)

N/A = Not applicable, as Park Holidays was acquired during the three months ended June 30, 2022.

Operating Statistics for MH and Annual RVs (excluding UK Operations)*

^(a) Percentage calculated on a trailing 12-month basis.

Acquisitions
(amounts in millions, except for *)

^(a) In conjunction with the acquisition of this ground-up development project, the Company issued 31,289 Common OP units valued at $4.5 million. The Company also delivered 68 of the 140 sites during the quarter.

^(b) In conjunction with this acquisition, the Company issued one million Series K preferred OP units valued at $100.0 million.

Capital Expenditures and Investments
(amounts in millions, except for *)

^(a) Refer to Definitions and Notes for additional information.

^(b) Average based on actual number of MH and RV sites and Marina wet slips and dry storage spaces associated with the recurring capital expenditures in each period.

Capitalization Overview
(Shares and units in thousands, dollar amounts in millions, except for *)

^(a) Refer to "Securities" within Definitions and Notes for additional information related to our securities outstanding.

^(b) Refer to "Enterprise Value" and "Net Debt" within Definitions and Notes for additional information.

Summary of Outstanding Debt

(amounts in millions, except for *)

^(a)  Includes the effect of amortizing deferred financing costs, loan premiums / discounts and derivatives.

^(b)  As of March 31, 2023, the Company's revolving credit facilities consisted of:

• $255.0 million borrowed on its U.S. line of credit at the Secured Overnight Financing Rate ("SOFR") plus 85 basis points.
• $422.4 million USD equivalent borrowed on its GBP line of credit at the Daily Sterling Overnight Index Average ("SONIA") plus 85 basis points.
• $64.2 million USD equivalent borrowed on its Australian line of credit at the Bank Bill Swap Bid Rate ("BBSY") plus 85 basis points.

^(c)  As of March 31, 2023, an aggregate of £500.0 million ($618.4 million) was swapped to a weighted average fixed rate of 3.87%.

^(d)  Mandatorily redeemable preferred equity and OP unit distributions are included within the line item 'Interest on mandatorily redeemable preferred OP units / equity' on the Company's Consolidated Statements of Operations.


Debt Maturities^(e)

^(e) Debt maturities include the unamortized deferred financing costs and discount / premiums associated with outstanding debt.

Debt Analysis

^(a) Refer to page 8 for additional detail on the Company's Recurring EBITDA (TTM).

^(b) Percentage includes the impact of hedge activities.

^ Excludes the Company's borrowings under its senior credit facility.

Definitions and Notes

Capital Expenditures and Investment Activity - The Company classifies its investments in properties into the following categories:

• Recurring Capital Expenditures - Property recurring capital expenditures are necessary to maintain asset quality, including purchasing and replacing assets used to operate the communities and marinas. Recurring capital expenditures at the Company's MH and RV properties include items such as: major road, driveway and pool improvements; clubhouse renovations; adding or replacing streetlights; playground equipment; signage; maintenance facilities; manager housing and property vehicles. Recurring capital expenditures at the Company's marinas include items such as: dredging, dock repairs and improvements, and equipment maintenance and upgrades. The minimum capitalized amount is five hundred dollars.
  
  
• Non-Recurring Capital Expenditures - The following investment and reinvestment activities are non-recurring in nature:
  
  
  • Lot Modifications - Lot modification capital expenditures are incurred to modify the foundational structures required to set a new home after a previous home has been removed. These expenditures are necessary to create a revenue stream from a new site renter and often improve the quality of the community. Other lot modification expenditures include land improvements added to annual RV sites to aid in the conversion of transient RV guests to annual contracts. See page 12 for move-out rates.
    
    
  • Growth Projects - Growth projects consist of revenue-generating or expense-reducing activities at MH, RV and marina properties. These include, but are 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.
    
    
  • Rebranding - Rebranding includes new signage at the Company's RV communities and costs of building an RV mobile application and updated website.
    
    
  • Acquisitions - Capital expenditures related to acquisitions represent the purchase price paid for the existing operating properties and land parcels for future ground-up development and expansions activities (detailed for the current calendar year on page 13), plus the capital improvements identified during due diligence that will be needed to bring acquired properties up to the Company's operating standards.
    
    

For the quarter ended March 31, 2023, the components of total acquisition investment are as follows (in millions):