Exhibit

EX-99.1 2 exhibit991pressreleaseands.htm EXHIBIT 99.1 PRESS RELEASE AND SUPPLEMENTAL PACKAGE MARCH 31, 2019 Exhibit

Table of Contents



Summary - Earnings Press Release	i - iv

Investor Information	1

Portfolio Overview	2

Financial Information
Balance Sheets	3
Statements of Operations	4
Outstanding Securities and Capitalization	5
Reconciliations to Non-GAAP Financial Measures	6
Reconciliation of Net Income to Funds from Operations	7
Reconciliation of Net Income to Recurring EBITDA	8
Reconciliation of Net Income to Net Operating Income	9
Non-GAAP and Other Financial Measures	10
Financial and Operating Highlights	11
Debt Analysis	12

Selected Financial Information
Real Property Operations – Same Community	13
Home Sales Summary	14
Rental Program Summary	15
Acquisitions and Other Summary	16

Other Information
Property Summary	17 - 18
Capital Improvements, Development, and Acquisitions	19
Operating Statistics for Manufactured Homes and Annual RV’s	20
Footnotes and Definitions	21 - 23

NEWS RELEASE

April 24, 2019

Sun Communities, Inc. Reports 2019 First Quarter Results

Southfield, Michigan, April 24, 2019 – 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”) and recreational vehicle (“RV”) communities, today reported its first quarter results for 2019.

Financial Results for the Three Months Ended March 31, 2019

For the three months ended March 31, 2019, total revenues increased $29.4 million, or 11.4 percent, to $287.3 million compared to $258.0 million for the same period in 2018. Net income attributable to common stockholders was $34.3 million, or $0.40 per diluted common share, for the three months ended March 31, 2019, as compared to net income attributable to common stockholders of $30.0 million, or $0.38 per diluted common share, for the same period in 2018.

Non-GAAP Financial Measures and Portfolio Performance


•	Core Funds from Operations (“Core FFO”)⁽¹⁾for the three months ended March 31, 2019, was $1.18 per diluted share and OP unit (“Share”) as compared to $1.14 in the prior year, an increase of 3.5 percent.


•	Same Community⁽²⁾ Net Operating Income (“NOI”)⁽¹⁾ increased by 7.2 percent for the three months ended March 31, 2019, as compared to the same period in 2018.


•	New home sales volume increased 17.9 percent for the three months ended March 31, 2019, as compared to the same period in 2018.

Gary Shiffman, Chief Executive Officer of Sun Communities, stated, “Our solid momentum has continued as we started the year with strong operating results and numerous investments. We delivered another quarter of robust same community NOI growth, which along with our recent investments and expansions, contributed to our outperformance. Our extensive history of providing first-rate amenities and a focus on customer service continues to draw sustained demand. We remain confident in our outlook, maintain an attractive growth pipeline and anticipate the continued realization of the benefits of our developments and expansion opportunities as we bring them online over time.”

OPERATING HIGHLIGHTS

Community Occupancy

Total portfolio occupancy was 96.4 percent at March 31, 2019, compared to 95.8 percent at March 31, 2018.

During the three months ended March 31, 2019, revenue producing sites increased by 571 sites, as compared to 616 revenue producing sites gained during the first quarter of 2018.

Same Community⁽²⁾Results

For the 345 communities owned and operated by the Company since January 1, 2018, NOI⁽¹⁾ for the three months ended March 31, 2019, increased 7.2 percent over the same period in 2018, as a result of a 6.0 percent increase in revenues and a 3.1 percent increase in operating expenses. Same Community occupancy⁽³⁾ increased to 98.2 percent at March 31, 2019 from 96.1 percent at March 31, 2018.

Home Sales

During the three months ended March 31, 2019, the Company sold 798 homes as compared to 837 homes sold during the same period in 2018, a 4.7 percent decrease. Rental home sales, which are included in total home sales, were 210 and 234 for the three months ended March 31, 2019 and 2018, respectively.

PORTFOLIO ACTIVITY

Acquisitions

During the quarter ended March 31, 2019, the Company acquired the following communities:



First Quarter 2019:
Date of Acquisition	Type	Location	Usable Sites	Consideration (in Millions)
1/2019	MH (Age Restricted)	Edgewater, Florida⁽¹⁾	730		$115.3
1/2019	RV	Old Orchard Beach, Maine	321	10.8
1/2019	MH	Oregon City, Oregon⁽²⁾	518	61.8
2/2019	MH	Buckeye, Arizona	400	22.3
2/2019	MH ⁽³⁾	Shelby Township, Michigan	1,308	94.5
2/2019	RV	Millsboro, Delaware	291	20.0
		Total	3,568		$324.7

⁽¹⁾Acquisition includes expansion potential of 70 sites.

⁽²⁾ In conjunction with the acquisition, the Company issued a new class of Operating Partnership (“OP”) units named Series D Preferred Units. As of March 31, 2019, 488,958 Series D Preferred OP Units were outstanding.

⁽³⁾ Contains two MH communities.

BALANCE SHEET AND CAPITAL MARKETS ACTIVITY

Debt Transactions

During the quarter ended March 31, 2019, the Company completed a $265.0 million twenty-five year term loan transaction which carries an interest rate of 4.17 percent and concurrently repaid a $186.8 million term loan. The transaction provided $78.2 million of additional proceeds and extended the maturity date from 2030 to 2044 using the same assets as collateral for the new loan.

As of March 31, 2019, the Company had $3.4 billion of debt outstanding. The weighted average interest rate was 4.39 percent and the weighted average maturity was 9.3 years. The Company had $21.9 million of unrestricted cash on hand. At period-end the Company’s net debt to trailing twelve month Recurring EBITDA⁽¹⁾ ratio was 6.0 times.

2019 Distributions

As previously announced, the Company increased its annual distribution by 5.6 percent to $3.00 per common share from $2.84 per common share. The increase began with the distribution declared in March 2019 that was paid after quarter end.

GUIDANCE 2019

The Company revises full year 2019 net income per diluted share to be in the range of $1.61 to $1.71 and Core FFO⁽¹⁾ per Share to be in the range of $4.80 to $4.88. The Company anticipates second quarter 2019 net income per diluted share to be in the range of $0.31 to $0.35 and Core FFO⁽¹⁾ per Share to be in the range of $1.11 to $1.14. The Company is revising its Same Community NOI⁽¹⁾growth guidance to be in the range of 6.4 percent to 7.0 percent for full year 2019.

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

Core FFO⁽¹⁾ per Share estimates assume certain gain and loss items that management considers unrelated to the operational and financial performance of our core business will be adjusted from FFO⁽¹⁾. 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 “Forward-Looking Statements.”

iii

EARNINGS CONFERENCE CALL

A conference call to discuss first quarter operating results will be held on Thursday, April 25, 2019 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 May 9, 2019 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 13688595. The conference call will be available live on Sun Communities’ website www.suncommunities.com. The replay will also be available on the website.

Sun Communities, Inc. is a REIT that, as of March 31, 2019, owned, operated, or had an interest in a portfolio of 379 communities comprising over 132,000 developed sites in 31 states and Ontario, Canada.

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

CONTACT

Please address all inquiries to our investor relations department at our website www.suncommunities.com, by phone to (248) 208-2500, by email to investorrelations@suncommunities.com or by mail to Sun Communities, Inc. Attn: Investor Relations, 27777 Franklin Road, Ste. 200, Southfield, MI 48034.

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. Forward-looking statements can be identified by words such as “will,” “may,” “could,” “expect,” “anticipate,” “believes,” “intends,” “should,” “plans,” “estimates,” “approximate,” “guidance,” and similar expressions in this press release that predict or indicate future events and trends and that do not report historical matters.

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, some of which are beyond the Company’s control. These risks, uncertainties, and other factors may cause the actual results of the Company to be materially different from any future results expressed or implied by such forward-looking statements. Such risks and uncertainties include national, regional and local economic climates, the ability to maintain rental rates and occupancy levels, competitive market forces, the performance of recent acquisitions, the ability to integrate future acquisitions smoothly and efficiently, changes in market rates of interest, changes in foreign currency exchange rates, the ability of manufactured home buyers to obtain financing and the level of repossessions by manufactured home lenders. Further details of potential risks that may affect the Company are described in its periodic reports filed with the U.S. Securities and Exchange Commission, including in the “Risk Factors” section of the Company’s Annual Report on Form 10-K.

The forward-looking statements contained in this press release speak only as of the date hereof and the Company expressly disclaims any obligation to provide public updates, revisions or amendments to any forward-looking statements made herein to reflect changes in the Company’s assumptions, expectations of future events, or trends.

Investor Information



RESEARCH COVERAGE

Firm	Analyst	Phone	Email
Bank of America Merrill Lynch	Joshua Dennerlein	(646) 855-1681	joshua.dennerlein@baml.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
RBC Capital Markets	Wes Golladay	(440) 715-2650	wes.golladay@rbccm.com
Robert W. Baird & Co.	Drew Babin	(610) 238-6634	dbabin@rwbaird.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

1st Quarter 2019 Supplemental Information 1 Sun Communities, Inc.

Portfolio Overview

(As of March 31, 2019)

1st Quarter 2019 Supplemental Information 2 Sun Communities, Inc.

Balance Sheets

(amounts in thousands)



	3/31/2019			12/31/2018
ASSETS:
Land	$	1,279,306		$	1,201,945
Land improvements and buildings	5,899,149			5,586,250
Rental homes and improvements	585,994			571,661
Furniture, fixtures and equipment	208,177			201,090
Investment property	7,972,626			7,560,946
Accumulated depreciation	(1,501,370		)	(1,442,630		)
Investment property, net	6,471,256			6,118,316
Cash and cash equivalents	21,946			50,311
Marketable securities	50,501			49,037
Inventory of manufactured homes	52,993			49,199
Notes and other receivables, net	179,814			160,077
Collateralized receivables, net⁽⁴⁾	101,938			106,924
Other assets, net	220,214			176,162
TOTAL ASSETS	$	7,098,662		$	6,710,026
LIABILITIES AND TEMPORARY EQUITY:
Mortgage loans payable	$	2,879,017		$	2,815,957
Secured borrowings⁽⁴⁾	102,676			107,731
Preferred Equity - Sun NG Resorts - mandatorily redeemable	35,249			35,277
Preferred OP units - mandatorily redeemable	34,663			37,338
Lines of credit ⁽⁵⁾	396,512			128,000
Distributions payable	66,887			63,249
Advanced reservation deposits and rent	151,860			133,698
Other liabilities	179,461			157,862
TOTAL LIABILITIES	3,846,325			3,479,112
Commitments and contingencies
Series A-4 preferred stock	31,739			31,739
Series A-4 preferred OP units	9,784			9,877
Series D preferred OP units	51,738			—
Equity Interests - NG Sun LLC	22,167			21,976
STOCKHOLDERS' EQUITY:
Common stock	865			864
Additional paid-in capital	4,398,641			4,398,949
Accumulated other comprehensive loss	(3,006		)	(4,504		)
Distributions in excess of accumulated earnings	(1,317,605		)	(1,288,486		)
Total Sun Communities, Inc. stockholders' equity	3,078,895			3,106,823
Noncontrolling interests:
Common and preferred OP units	51,816			53,354
Consolidated variable interest entities	6,198			7,145
Total noncontrolling interests	58,014			60,499
TOTAL STOCKHOLDERS' EQUITY	3,136,909			3,167,322
TOTAL LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY	$	7,098,662		$	6,710,026

1st Quarter 2019 Supplemental Information 3 Sun Communities, Inc.

Statements of Operations - Quarter to Date Comparison

(amounts in thousands, except per share amounts)



	Three Months Ended March 31,
	2019			2018			Change			% Change
REVENUES:
Income from real property (excluding transient revenue)	$	190,564		$	175,210		$	15,354		8.8	%
Transient revenue	26,215			22,001			4,214			19.2	%
Revenue from home sales	39,618			34,900			4,718			13.5	%
Rental home revenue	13,971			13,020			951			7.3	%
Ancillary revenue	8,482			6,568			1,914			29.1	%
Interest	4,800			5,316			(516		)	(9.7	)%
Brokerage commissions and other revenues, net	3,680			960			2,720			283.3	%
Total Revenues	287,330			257,975			29,355			11.4	%
EXPENSES:
Property operating and maintenance	57,909			51,630			6,279			12.2	%
Real estate taxes	15,330			13,836			1,494			10.8	%
Cost of home sales	29,277			26,571			2,706			10.2	%
Rental home operating and maintenance	4,788			5,227			(439		)	(8.4	)%
Ancillary expenses	7,101			5,383			1,718			31.9	%
Home selling expenses	3,324			3,290			34			1.0	%
General and administrative	21,887			19,757			2,130			10.8	%
Catastrophic weather related charges, net	782			(2,213		)	2,995			(135.3	)%
Depreciation and amortization	76,556			66,437			10,119			15.2	%
Loss on extinguishment of debt	653			196			457			233.2	%
Interest	34,014			31,138			2,876			9.2	%
Interest on mandatorily redeemable preferred OP units / equity	1,094			619			475			76.7	%
Total Expenses	252,715			221,871			30,844			13.9	%
Income Before Other Items	34,615			36,104			(1,489		)	(4.1	)%
Remeasurement of marketable securities	267			—			267			N/A
Other income / (expense), net ⁽⁶⁾	1,898			(2,617		)	4,515			172.5	%
Income / (loss) from nonconsolidated affiliates	344			(59		)	403			683.1	%
Current tax expense	(214		)	(174		)	(40		)	(23.0	)%
Deferred tax benefit	217			347			(130		)	(37.5	)%
Net Income	37,127			33,601			3,526			10.5	%
Less: Preferred return to preferred OP units / equity	(1,323		)	(1,080		)	(243		)	22.5	%
Less: Amounts attributable to noncontrolling interests	(1,041		)	(2,094		)	1,053			(50.3	)%
Net Income Attributable to Sun Communities, Inc.	34,763			30,427			4,336			14.3	%
Less: Preferred stock distribution	(432		)	(441		)	9			(2.0	)%
Net Income Attributable to Sun Communities, Inc. Common Stockholders	$	34,331		$	29,986		$	4,345		14.5	%

Weighted average common shares outstanding:
Basic	85,520			78,855			6,665			8.5	%
Diluted	86,033			79,464			6,569			8.3	%
Earnings per share:
Basic	$	0.40		$	0.38		$	0.02		5.3	%
Diluted	$	0.40		$	0.38		$	0.02		5.3	%

1st Quarter 2019 Supplemental Information 4 Sun Communities, Inc.

Outstanding Securities and Capitalization

(amounts in thousands except for *)



Outstanding Securities - As of March 31, 2019

	Number of Units/Shares Outstanding	Conversion Rate*	If Converted	Issuance Price per unit*	Annual Distribution Rate*
Convertible Securities
Series A-1 preferred OP units	328	2.4390	800	$100	6.0%
Series A-3 preferred OP units	40	1.8605	74	$100	4.5%
Series A-4 preferred OP units	410	0.4444	182	$25	6.5%
Series C preferred OP units	314	1.1100	349	$100	4.5%
Series D preferred OP units	489	0.8000	391	$100	3.8%
Common OP units	2,719	1.0000	2,719	N/A	Mirrors common shares distributions
Series A-4 preferred stock	1,063	0.4444	472	$25	6.5%
Non-Convertible Securities
Common shares	86,463	N/A	N/A	N/A	$3.00^
^ Annual distribution is based on the last quarterly distribution annualized.



Capitalization - As of March 31, 2019

Equity	Shares	Share Price*		Total
Common shares	86,463	$	118.52	$	10,247,595
Common OP units	2,719	$	118.52	322,256
Subtotal	89,182			$	10,569,851

Series A-1 preferred OP units	800	$	118.52	94,816
Series A-3 preferred OP units	74	$	118.52	8,770
Series A-4 preferred OP units	182	$	118.52	21,571
Series C preferred OP units	349	$	118.52	41,363
Series D preferred OP units	391	$	118.52	46,341
Total diluted shares outstanding	90,978			$	10,782,712

Debt
Mortgage loans payable				$	2,879,017
Secured borrowings⁽⁴⁾				102,676
Preferred Equity - Sun NG Resorts - mandatorily redeemable				35,249
Preferred OP units - mandatorily redeemable				34,663
Lines of credit ⁽⁵⁾				396,512
Total debt				$	3,448,117

Preferred
Series A-4 preferred stock	1,063	$	25.00	$	26,575
Total Capitalization				$	14,257,404

1st Quarter 2019 Supplemental Information 5 Sun Communities, Inc.

Reconciliations to Non-GAAP Financial Measures

1st Quarter 2019 Supplemental Information 6 Sun Communities, Inc.

Reconciliation of Net Income Attributable to Sun Communities, Inc. Common Stockholders to FFO

(amounts in thousands except for per share data)



	Three Months Ended March 31,
	2019			2018
Net income attributable to Sun Communities, Inc. common stockholders:	$	34,331		$	29,986
Adjustments:
Depreciation and amortization	76,712			66,646
Remeasurement of marketable securities	(267		)	—
Amounts attributable to noncontrolling interests	723			1,889
Preferred return to preferred OP units	527			553
Preferred distribution to Series A-4 preferred stock	432			441
Gain on disposition of assets, net	(5,679		)	(4,539		)
FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities ^{(1) (7)}	$	106,779		$	94,976
Adjustments:
Other acquisition related costs⁽⁸⁾	160			135
Loss on extinguishment of debt	653			196
Catastrophic weather related charges, net	782			(2,213		)
Loss of earnings - catastrophic weather related ⁽⁹⁾	—			325
Other (income) / expense ⁽⁶⁾	(1,898		)	2,617
Debt premium write-off	—			(782		)
Deferred tax benefit	(217		)	(347		)
Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities ^{(1) (7)}	$	106,259		$	94,907

Weighted average common shares outstanding - basic:	85,520			78,855
Add:
Common stock issuable upon conversion of stock options	1			2
Restricted stock	512			607
Common OP units	2,722			2,741
Common stock issuable upon conversion of Series A-4 preferred stock	472			482
Common stock issuable upon conversion of Series A-3 preferred OP units	75			75
Common stock issuable upon conversion of Series A-1 preferred OP units	803			836
Weighted average common shares outstanding - fully diluted	90,105			83,598

FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities ^{(1) (7)} per share - fully diluted	$	1.19		$	1.14
Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities ^{(1) (7)} per share - fully diluted	$	1.18		$	1.14

1st Quarter 2019 Supplemental Information 7 Sun Communities, Inc.

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

(amounts in thousands)



	Three Months Ended March 31,
	2019			2018
Net income attributable to Sun Communities, Inc., common stockholders:	$	34,331		$	29,986
Adjustments:
Interest expense	35,108			31,757
Loss on extinguishment of debt	653			196
Current tax expense	214			174
Deferred tax benefit	(217		)	(347		)
(Income) / loss from nonconsolidated affiliates	(344		)	59
Depreciation and amortization	76,556			66,437
Gain on disposition of assets, net	(5,679		)	(4,539		)
EBITDAre ⁽¹⁾	$	140,622		$	123,723
Adjustments:
Remeasurement of marketable securities	(267		)	—
Other (income) / expense, net ⁽⁶⁾	(1,898		)	2,617
Catastrophic weather related charges, net	782			(2,213		)
Preferred return to preferred OP units / equity	1,323			1,080
Amounts attributable to noncontrolling interests	1,041			2,094
Preferred stock distribution	432			441
Plus: Gain on dispositions of assets, net	5,679			4,539
Recurring EBITDA ⁽¹⁾	$	147,714		$	132,281

1st Quarter 2019 Supplemental Information 8 Sun Communities, Inc.

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

(amounts in thousands)



	Three Months Ended March 31,
	2019			2018
Net income attributable to Sun Communities, Inc., common stockholders:	$	34,331		$	29,986
Other revenues	(8,480		)	(6,276		)
Home selling expenses	3,324			3,290
General and administrative	21,887			19,757
Catastrophic weather related charges, net	782			(2,213		)
Depreciation and amortization	76,556			66,437
Loss on extinguishment of debt	653			196
Interest expense	35,108			31,757
Remeasurement of marketable securities	(267		)	—
Other (income) / expense, net ⁽⁶⁾	(1,898		)	2,617
(Income) / loss from nonconsolidated affiliates	(344		)	59
Current tax expense	214			174
Deferred tax benefit	(217		)	(347		)
Preferred return to preferred OP units / equity	1,323			1,080
Amounts attributable to noncontrolling interests	1,041			2,094
Preferred stock distribution	432			441
NOI⁽¹⁾/ Gross Profit	$	164,445		$	149,052



	Three Months Ended March 31,
	2019			2018
Real Property NOI⁽¹⁾	$	143,540		$	131,745
Rental Program NOI ⁽¹⁾	26,061			24,102
Home Sales NOI ⁽¹⁾/ Gross Profit	10,341			8,329
Ancillary NOI ⁽¹⁾/ Gross Profit	1,381			1,185
Site rent from Rental Program (included in Real Property NOI) ^(1)(10)	(16,878		)	(16,309		)
NOI ⁽¹⁾/ Gross profit	$	164,445		$	149,052

1st Quarter 2019 Supplemental Information 9 Sun Communities, Inc.

Non-GAAP and Other Financial Measures

1st Quarter 2019 Supplemental Information 10 Sun Communities, Inc.

Financial and Operating Highlights

(amounts in thousands, except for *)



	Quarter Ended
	3/31/2019		12/31/2018		9/30/2018		6/30/2018		3/31/2018
FINANCIAL INFORMATION
Total revenues	$	287,330	$	274,004	$	323,538	$	271,426	$	257,975
Net income	37,127		10,672		51,715		24,170		33,601
Net income attributable to Sun Communities Inc.	34,331		9,039		46,060		20,408		29,986
Earnings per share basic*	$	0.40	$	0.11	$	0.56	$	0.25	$	0.38
Earnings per share diluted*	0.40		0.11		0.56		0.25		0.38

Cash distributions declared per common share*	$	0.75	$	0.71	$	0.71	$	0.71	$	0.71

Recurring EBITDA ⁽¹⁾	$	147,714	$	133,669	$	158,153	$	128,798	$	132,281
FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities ^{(1) (7)}	106,779		88,562		117,018		85,623		94,976
Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities ^{(1) (7)}	106,259		92,695		116,959		90,372		94,907
FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities ^{(1) (7)}per share - fully diluted*	$	1.19	$	0.98	$	1.35	$	1.02	$	1.14
Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities ^{(1) (7)} per share - fully diluted*	1.18		1.03		1.35		1.07		1.14

BALANCE SHEETS
Total assets	$	7,098,662	$	6,710,026	$	6,653,726	$	6,492,348	$	6,149,653
Total debt	3,448,117		3,124,303		3,004,929		3,364,081		3,129,440
Total liabilities	3,846,325		3,479,112		3,367,285		3,736,621		3,471,096



	Quarter Ended
	3/31/2019		12/31/2018		9/30/2018		6/30/2018		3/31/2018
OPERATING INFORMATION*
New home sales	125		140		146		134		106
Pre-owned home sales	673		738		825		809		731
Total homes sold	798		878		971		943		837

Communities	379		371		370		367		350

Developed sites	112,175		108,963		108,142		107,192		106,617
Transient RV sites	20,173		19,491		19,432		19,007		15,693
Total sites	132,348		128,454		127,574		126,199		122,310

MH occupancy	95.4	%	95.0	%	94.9	%	95.0	%	94.7	%
RV occupancy	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Total blended MH and RV occupancy	96.4	%	96.1	%	96.1	%	96.1	%	95.8	%

1st Quarter 2019 Supplemental Information 11 Sun Communities, Inc.

Debt Analysis

(amounts in thousands)



	Quarter Ended
	3/31/2019			12/31/2018			9/30/2018			6/30/2018			3/31/2018
DEBT OUTSTANDING
Mortgage loans payable	$	2,879,017		$	2,815,957		$	2,819,225		$	2,636,847		$	2,826,225
Secured borrowings⁽⁴⁾	102,676			107,731			113,089			118,242			124,077
Preferred Equity - Sun NG Resorts - mandatorily redeemable	35,249			35,277			35,277			35,277			—
Preferred OP units - mandatorily redeemable	34,663			37,338			37,338			37,338			37,338
Lines of credit ⁽⁵⁾	396,512			128,000			—			536,377			141,800
Total debt	$	3,448,117		$	3,124,303		$	3,004,929		$	3,364,081		$	3,129,440

% FIXED/FLOATING
Fixed	88.5		%	95.9		%	100.0		%	84.0		%	90.6		%
Floating	11.5		%	4.1		%	—		%	16.0		%	9.4		%
Total	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%

WEIGHTED AVERAGE INTEREST RATES
Mortgage loans payable	4.24		%	4.22		%	4.23		%	4.27		%	4.25		%
Preferred Equity - Sun NG Resorts - mandatorily redeemable	6.00		%	6.00		%	6.00		%	6.00		%	—		%
Preferred OP units - mandatorily redeemable	6.50		%	6.61		%	6.61		%	6.61		%	6.61		%
Lines of credit ⁽⁵⁾	3.73		%	3.77		%	—		%	3.31		%	3.01		%
Average before Secured borrowings ⁽⁴⁾	4.22		%	4.25		%	4.28		%	4.15		%	4.22		%
Secured borrowings⁽⁴⁾	9.94		%	9.94		%	9.95		%	9.96		%	9.97		%
Total average	4.39		%	4.45		%	4.40		%	4.36		%	4.45		%

DEBT RATIOS
Net Debt / Recurring EBITDA ⁽¹⁾ (TTM)	6.0			5.6			5.4			6.5			6.2
Net Debt / Enterprise Value	24.1		%	25.2		%	24.1		%	28.6		%	28.8		%
Net Debt / Gross Assets	39.8		%	37.7		%	35.9		%	42.7		%	41.9		%

COVERAGE RATIOS
Recurring EBITDA ⁽¹⁾ (TTM) / Interest	4.1			4.0			3.9			3.7			3.6
Recurring EBITDA ⁽¹⁾ (TTM) / Interest + Pref. Distributions + Pref. Stock Distribution	3.9			3.9			3.8			3.6			3.4



MATURITIES/PRINCIPAL AMORTIZATION NEXT FIVE YEARS	Remaining 2019			2020			2021			2022			2023
Mortgage loans payable:
Maturities	$	—		$	58,078		$	270,680		$	82,155		$	307,465
Weighted average rate of maturities	—		%	5.92		%	5.53		%	4.46		%	4.17		%
Principal amortization	44,099			59,931			59,173			57,182			53,829
Secured borrowings⁽⁴⁾	3,846			5,547			5,956			6,154			6,154
Preferred Equity - Sun NG Resorts - mandatorily redeemable	—			—			—			35,249			—
Lines of credit ⁽⁵⁾	—			3,512			393,000			—			—
Total	$	47,945		$	127,068		$	728,809		$	180,740		$	367,448

1st Quarter 2019 Supplemental Information 12 Sun Communities, Inc.

Real Property Operations – Same Community⁽²⁾

(amounts in thousands except for Other Information)



	Three Months Ended March 31,
	2019		2018		Change			% Change
Financial Information
Income from real property ⁽¹¹⁾	$	199,084	$	187,826	$	11,258		6.0	%

Property Operating Expenses:
Payroll and benefits	16,421		15,534		887			5.7	%
Legal, taxes & insurance	2,191		2,471		(280		)	(11.3	)%
Utilities ⁽¹¹⁾	14,434		14,463		(29		)	(0.2	)%
Supplies and repair ⁽¹²⁾	5,719		5,159		560			10.9	%
Other	4,455		4,688		(233		)	(5.0	)%
Real estate taxes	14,590		13,766		824			6.0	%
Total property operating expenses	57,810		56,081		1,729			3.1	%
Real Property NOI⁽¹⁾	$	141,274	$	131,745	$	9,529		7.2	%



	As of March 31,
	2019			2018			Change			% Change
Other Information
Number of properties	345			345			—

MH occupancy⁽³⁾	97.6		%
RV occupancy⁽³⁾	100.0		%
MH & RV blended occupancy %⁽³⁾	98.2		%	96.1		%	2.1		%

Sites available for development	7,296			7,602			(306		)	(4.0	)%

Monthly base rent per site - MH	$	565		$	543		$	22		4.1	%	⁽¹⁴⁾
Monthly base rent per site - RV ⁽¹³⁾	$	457		$	434		$	23		5.3	%	⁽¹⁴⁾
Monthly base rent per site - Total ⁽¹³⁾	$	541		$	519		$	22		4.2	%	⁽¹⁴⁾

1st Quarter 2019 Supplemental Information 13 Sun Communities, Inc.

Home Sales Summary

(amounts in thousands except for *)



	Three Months Ended March 31,
Financial Information	2019			2018			Change			% Change
Revenue:
New home sales	$	15,381		$	11,893		$	3,488		29.3	%
Pre-owned home sales	24,237			23,007			1,230			5.3	%
Revenue from home sales	39,618			34,900			4,718			13.5	%
Expenses:
New home cost of sales	13,146			10,197			2,949			28.9	%
Pre-owned home cost of sales	16,131			16,374			(243		)	(1.5	)%
Cost of home sales	29,277			26,571			2,706			10.2	%
NOI / Gross Profit ⁽¹⁾	$	10,341		$	8,329		$	2,012		24.2	%

Gross profit – new homes	$	2,235		$	1,696		$	539		31.8	%
Gross margin % – new homes	14.5		%	14.3		%	0.2		%
Average selling price – new homes*	$	123,048		$	112,198		$	10,850		9.7	%

Gross profit – pre-owned homes	$	8,106		$	6,633		$	1,473		22.2	%
Gross margin % – pre-owned homes	33.4		%	28.8		%	4.6		%
Average selling price – pre-owned homes*	$	36,013		$	31,473		$	4,540		14.4	%

Statistical Information
New home sales volume*	125			106			19			17.9	%
Pre-owned home sales volume*	673			731			(58		)	(7.9	)%
Total homes sold*	798			837			(39		)	(4.7	)%

1st Quarter 2019 Supplemental Information 14 Sun Communities, Inc.

Rental Program Summary

(amounts in thousands except for *)



	Three Months Ended March 31,
Financial Information	2019		2018		Change			% Change
Revenues:
Rental home revenue	$	13,971	$	13,020	$	951		7.3	%
Site rent included in Income from real property	16,878		16,309		569			3.5	%
Rental program revenue	30,849		29,329		1,520			5.2	%

Expenses:
Repairs and refurbishment	2,304		2,314		(10		)	(0.4	)%
Taxes and insurance	1,864		1,546		318			20.6	%
Other	620		1,367		(747		)	(54.6	)%
Rental program operating and maintenance	4,788		5,227		(439		)	(8.4	)%
Rental Program NOI⁽¹⁾	$	26,061	$	24,102	$	1,959		8.1	%



	As of March 31,
Other Information	2019		2018		Change			% Change
Number of occupied rental homes, end of period*	11,170		11,074		96			0.9	%
Investment in occupied rental homes, end of period	$	547,844	$	504,402	$	43,442		8.6	%
Number of sold rental homes (YTD)*	210		234		(24		)	(10.3	)%
Weighted average monthly rental rate, end of period*	$	963	$	913	$	50		5.5	%

1st Quarter 2019 Supplemental Information 15 Sun Communities, Inc.

Acquisitions and Other Summary ⁽¹⁵⁾

(amounts in thousands except for statistical data)



	Three Months Ended March 31, 2019
REVENUES:
Income from real property	$	9,251

PROPERTY AND OPERATING EXPENSES:
Payroll and benefits	2,450
Legal, taxes & insurance	193
Utilities⁽¹¹⁾	1,550
Supplies and repair	635
Other	1,417
Real estate taxes	740
Property operating expenses	6,985
NET OPERATING INCOME (NOI)⁽¹⁾	$	2,266

	As of March 31, 2019
Other information:
Number of properties	34
Occupied sites	3,699
Developed sites	3,893
Occupancy %	95.0		%
Transient sites	5,189

1st Quarter 2019 Supplemental Information 16 Sun Communities, Inc.



Property Summary
(includes MH and Annual RVs)

COMMUNITIES	3/31/2019		12/31/2018		9/30/2018		6/30/2018		3/31/2018
FLORIDA
Communities	125		124		124		124		123
Developed sites ⁽¹⁶⁾	38,878		37,874		37,879		37,723		37,726
Occupied ⁽¹⁶⁾	37,932		36,868		36,822		36,602		36,546
Occupancy % ⁽¹⁶⁾	97.6	%	97.3	%	97.2	%	97.0	%	96.9	%
Sites for development	1,754		1,684		1,494		1,335		1,397
MICHIGAN
Communities	72		70		70		69		68
Developed sites ⁽¹⁶⁾	27,777		26,504		26,116		26,039		25,881
Occupied ⁽¹⁶⁾	26,430		25,075		24,830		24,709		24,319
Occupancy % ⁽¹⁶⁾	95.2	%	94.6	%	95.1	%	94.9	%	94.0	%
Sites for development	1,202		1,202		1,533		1,668		1,371
TEXAS
Communities	23		23		23		23		21
Developed sites ⁽¹⁶⁾	6,953		6,922		6,905		6,622		6,614
Occupied ⁽¹⁶⁾	6,529		6,428		6,301		6,251		6,191
Occupancy % ⁽¹⁶⁾	93.9	%	92.9	%	91.3	%	94.4	%	93.6	%
Sites for development	1,107		1,121		907		1,168		1,100
CALIFORNIA
Communities	31		30		30		29		27
Developed sites ⁽¹⁶⁾	5,949		5,941		5,932		5,694		5,692
Occupied ⁽¹⁶⁾	5,902		5,897		5,881		5,647		5,646
Occupancy % ⁽¹⁶⁾	99.2	%	99.3	%	99.1	%	99.2	%	99.2	%
Sites for development	56		56		59		177		389
ARIZONA
Communities	13		12		11		11		11
Developed sites ⁽¹⁶⁾	4,238		3,836		3,826		3,804		3,797
Occupied ⁽¹⁶⁾	3,830		3,545		3,515		3,485		3,468
Occupancy % ⁽¹⁶⁾	90.4	%	92.4	%	91.9	%	91.6	%	91.3	%
Sites for development	—		—		—		—		—
ONTARIO, CANADA
Communities	15		15		15		15		15
Developed sites ⁽¹⁶⁾	3,832		3,845		3,832		3,752		3,650
Occupied ⁽¹⁶⁾	3,832		3,845		3,832		3,752		3,650
Occupancy % ⁽¹⁶⁾	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Sites for development	1,675		1,682		1,662		1,662		1,664
INDIANA
Communities	11		11		11		11		11
Developed sites ⁽¹⁶⁾	3,089		3,089		3,089		3,089		3,048
Occupied ⁽¹⁶⁾	2,823		2,772		2,778		2,791		2,785
Occupancy % ⁽¹⁶⁾	91.4	%	89.7	%	89.9	%	90.4	%	91.4	%
Sites for development	277		277		277		277		318

1st Quarter 2019 Supplemental Information 17 Sun Communities, Inc.



Property Summary
(includes MH and Annual RVs)

COMMUNITIES	3/31/2019			12/31/2018		9/30/2018		6/30/2018		3/31/2018
OHIO
Communities	9			9		9		9		9
Developed sites ⁽¹⁶⁾	2,770			2,770		2,770		2,767		2,756
Occupied ⁽¹⁶⁾	2,704			2,693		2,694		2,698		2,672
Occupancy % ⁽¹⁶⁾	97.6	%		97.2	%	97.3	%	97.5	%	97.0	%
Sites for development	59			59		59		59		75
COLORADO
Communities	8			8		8		8		8
Developed sites ⁽¹⁶⁾	2,335			2,335		2,335		2,335		2,335
Occupied ⁽¹⁶⁾	2,323			2,320		2,313		2,319		2,327
Occupancy % ⁽¹⁶⁾	99.5	%		99.4	%	99.1	%	99.3	%	99.7	%
Sites for development	2,129			2,129		2,129		1,819		650
OTHER STATES
Communities	72			69		69		68		57
Developed sites ⁽¹⁶⁾	16,354			15,847		15,458		15,367		15,118
Occupied ⁽¹⁶⁾	15,826			15,323		14,932		14,786		14,544
Occupancy % ⁽¹⁶⁾	96.8	%		96.7	%	96.6	%	96.2	%	96.2	%
Sites for development	2,987			3,048		3,195		3,233		2,381
TOTAL - PORTFOLIO
Communities	379			371		370		367		350
Developed sites ⁽¹⁶⁾	112,175			108,963		108,142		107,192		106,617
Occupied ⁽¹⁶⁾	108,131			104,766		103,898		103,040		102,148
Occupancy % ⁽¹⁶⁾	96.4	%	⁽¹⁷⁾	96.1	%	96.1	%	96.1	%	95.8	%
Sites for development ⁽¹⁸⁾	11,246			11,258		11,315		11,398		9,345
% Communities age restricted	31.7	%		32.1	%	32.2	%	32.2	%	33.7	%

TRANSIENT RV PORTFOLIO SUMMARY
Location
Florida	5,650			5,917		5,786		5,942		5,870
California	1,975			1,765		1,774		1,377		806
Texas	1,717			1,752		1,758		1,776		1,360
Arizona	1,421			1,423		1,057		1,079		1,085
Maryland	1,375			1,381		1,386		1,386		1,155
Ontario, Canada	1,131			1,046		1,056		1,133		1,234
New York	929			925		910		928		610
New Jersey	906			884		893		906		931
Maine	857			572		578		591		591
Michigan	611			576		629		350		256
Indiana	519			519		519		519		519
Other locations	3,082			2,731		3,086		3,020		1,276
Total transient RV sites	20,173			19,491		19,432		19,007		15,693

1st Quarter 2019 Supplemental Information 18 Sun Communities, Inc.

Capital Improvements, Development, and Acquisitions

(amounts in thousands except for *)



	Recurring Capital Expenditures Average/Site*		Recurring Capital Expenditures ⁽¹⁹⁾		Lot Modifications ⁽²⁰⁾		Acquisitions ⁽²¹⁾		Expansion & Development ⁽²²⁾		Revenue Producing ⁽²³⁾
YTD 2019	$	53	$	5,296	$	5,587	$	328,700	$	51,157	$	2,803
2018	$	263	$	24,265	$	22,867	$	414,840	$	152,672	$	3,864
2017	$	214	$	14,166	$	18,049	$	204,375	$	88,331	$	1,990

1st Quarter 2019 Supplemental Information 19 Sun Communities, Inc.

Operating Statistics for MH and Annual RVs



LOCATIONS	Resident Move-outs	Net Leased Sites ⁽²⁴⁾		New Home Sales	Pre-owned Home Sales	Brokered Re-sales
Florida	281	348		59	56	342
Michigan	197	111		15	324	30
Ontario, Canada	301	(13	)	3	2	13
Texas	61	101		11	77	14
Arizona	11	16		11	1	54
Indiana	13	51		2	82	4
Ohio	48	11		—	38	—
California	12	5		5	—	14
Colorado	—	3		6	19	8
Other locations	426	(62	)	13	74	21
Three Months Ended March 31, 2019	1,350	571		125	673	500



TOTAL FOR YEAR ENDED	Resident Move-outs	New Leased Sites ⁽²⁴⁾	New Home Sales	Pre-owned Home Sales	Brokered Re-sales
2018	3,435	2,600	526	3,103	2,147
2017	2,739	2,406	362	2,920	2,006



PERCENTAGE TRENDS	Resident Move-outs		Resident Re-sales
2019 (TTM)	2.5	%	7.2	%
2018	2.4	%	7.2	%
2017	1.9	%	6.6	%

1st Quarter 2019 Supplemental Information 20 Sun Communities, Inc.

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, and after adjustments for unconsolidated 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

1st Quarter 2019 Supplemental Information 21 Sun Communities, Inc.

property and of investments in unconsolidated affiliates caused by a decrease in value of depreciated property in the affiliate, and adjustments to reflect the entity’s share of EBITDAre of unconsolidated 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 2019 actual exchange rates.

(3) The Same Community occupancy percentage for 2019 is derived from 106,386 developed sites, of which 104,432 were occupied. The number of developed sites excludes RV transient sites and approximately 1,900 recently completed but vacant MH expansion sites. Without the adjustment for vacant expansion sites, the Same Community occupancy percentage is 95.4 percent for MH, 100.0 percent for RV, and 96.4 percent for the blended MH and RV. The MH and RV blended occupancy is derived from 108,282 developed sites, of which 104,432 were occupied. The Same Community occupancy percentage for 2018 has been adjusted to reflect incremental period-over-period growth from filled expansion sites and the conversion of transient RV sites to annual RV sites.

(4) This is a transferred asset transaction which has been classified as collateralized receivables and the cash received from this transaction has been classified as a secured borrowing. The interest income and interest expense accrue at the same rate and amount.

(5) Lines of credit includes the Company’s MH floor plan facility. The effective interest rate on the MH floor plan facility was 7.0 percent for all periods presented. However, the Company pays no interest if the floor plan balance is repaid within 60 days.


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



	Three Months Ended March 31,
	2019			2018
Foreign currency translation gain / (loss)	$	1,969		$	(2,524	)
Contingent liability remeasurement (loss) / gain	(71		)	(93		)
Other income / (expense), net	$	1,898		$	(2,617	)

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

(8) These 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.

(9)

We recorded a total estimated income of $0.3 million in the Core FFO⁽¹⁾ during the first quarter ending March 31, 2018 for the income related to the loss of earnings in excess of the applicable business interruption deductible in relation to our Florida Keys communities. The estimated income was not recorded within our consolidated financial statements during that period in accordance with GAAP. The income was recognized in the fourth quarter of 2018. During the three months ended March 31, 2019, we recorded GAAP income of $0.4 million from business interruption coverage upon notification of payment by the insurance company.

(10) The renter’s monthly payment includes the site rent and an amount attributable to the home lease. Site rent is reflected in Real Property NOI. For purposes of management analysis, site rent is included in Rental Program revenue to evaluate the incremental revenue gains associated with implementation of the Rental Program, and to assess the overall growth and performance of the Rental Program and financial impact on the Company’s operations.

(11) Same Community results net $8.4 million and $8.1 million of utility revenue against the related utility expense in property operating and maintenance expense for the three months ended March 31, 2019 and 2018, respectively. The Company adopted ASC 842, the new leasing standard, as of January 1, 2019 which required the reclassification of bad debt expense

1st Quarter 2019 Supplemental Information 22 Sun Communities, Inc.

from Property operating expense to Income from real property. To assist with comparability within Same Community results, bad debt expense has been reclassified to be shown as a reduction of Income from real property for all periods presented.

(12) Same Community supplies and repair expense excludes $0.1 million for the three months ended March 31, 2018 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.

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

(14) Calculated using actual results without rounding.

(15) Acquisitions and other is comprised of seven properties acquired and one property being operated under a temporary use permit in 2019, twenty properties acquired in 2018, three Florida Keys properties that require redevelopment as a result of damage sustained from Hurricane Irma in 2017, one recently opened ground-up development, one property undergoing redevelopment, one property that we have an interest in, but do not operate, and other miscellaneous transactions and activity.

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

(17) As of March 31, 2019, total portfolio MH occupancy was 95.4 percent (including the impact of approximately 1,900 recently constructed but vacant MH expansion sites) and annual RV occupancy was 100.0 percent.

(18) Total sites for development were comprised of approximately 71.7 percent for expansion, 23.3 percent for greenfield development and 5.0 percent for redevelopment.

(19) Recurring capital expenditures are necessary to maintain asset quality, including purchasing and replacing assets used to operate the community. These capital expenditures 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. The minimum capitalized amount is five hundred dollars.

(20) Lot modification capital expenditures 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.

(21) Capital expenditures related to acquisitions represent the purchase price of existing operating communities and land parcels to develop expansions or new communities. These costs for the three months ended March 31, 2019 include $12.4 million of capital improvements identified during due diligence that are necessary to bring the communities to the Company’s operating standards. For the years ended December 31, 2018 and 2017, these costs were $94.6 million and $84.0 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.

(22) Expansion and development expenditures consist primarily of construction costs and costs necessary to complete home site improvements, such as driveways, sidewalks and landscaping.

(23) Capital costs related to revenue generating activities consist primarily of garages, sheds, sub-metering of water, sewer and electricity. Revenue generating attractions at our RV resorts are also included here and, occasionally, a special capital project requested by residents and accompanied by an extra rental increase will be classified as revenue producing.

(24) Net leased sites do not include occupied sites acquired during that year.

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

1st Quarter 2019 Supplemental Information 23 Sun Communities, Inc.