Sun Communities Inc
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Real Estate : Equity Real Estate Investment Trusts (REITs) | Mid Cap Growth
Company profile

Sun Communities, Inc. is a fully integrated real estate investment trust (REIT). It owns manufactured housing (MH) communities and recreational vehicle (RV) resorts throughout the United States and in Ontario, Canada. Its segments include Manufactured home (MH) communities, Recreational vehicle (RV) resorts and Marina. MH segment owns, operates, and develops a portfolio of MH communities and is in the business of acquiring, operating, and developing ground-up MH communities to provide affordable housing solutions to residents. RV segment owns, operates, and develops a portfolio of RV resorts and is in the business of acquiring, operating, and developing ground-up RV resorts throughout the United States and in Ontario, Canada. Marina segment owns, operates, and develops marinas in coastal regions, others located in various inland regions, and Puerto Rico. It owns 40 and two managed communities in the United Kingdom primarily located in seaside locations in the south of England.

Closing Price
$161.38
Day's Change
-0.62 (-0.38%)
Bid
--
Ask
--
B/A Size
--
Day's High
164.84
Day's Low
161.98
Volume
(Light)
Volume:
502,188

10-day average volume:
689,309
502,188

Sun Communities, Inc. Reports 2022 First Quarter Results

4:38 pm ET April 25, 2022 (Globe Newswire) Print

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 first quarter results for 2022.

Financial Results for the Quarter ended March 31, 2022

For the quarter ended March 31, 2022, total revenues increased by $106.5 million, or 24.1 percent, to $548.5 million compared to approximately $442.0 million for the same period in 2021. Net income attributable to common shareholders was $0.7 million, or $0.01 per diluted common share, compared to net income attributable to common shareholders of $24.8 million, or $0.23 per diluted common share, for the same period in 2021.

Non-GAAP Financial Measures and Portfolio Performance

"Our strong first quarter performance builds on the momentum of last year as we delivered 6.3 percent growth in Core FFO per Share," said Gary A. Shiffman, Chairman and CEO. "With sustained tailwinds, the demand for attainable housing and outdoor vacationing continues to reach new levels, and with our best-in-class offering, Sun is uniquely positioned to meet these customer needs. We are pleased to have completed the acquisition of Park Holidays and already have a growing pipeline of acquisition opportunities in the UK. Furthermore, we have been active in the capital markets as we amended and upsized our Senior Credit Facility, issued $600 million of senior notes with a favorable rate lock, and settled forward equity sale agreements, all of which enhanced our balance sheet position. Over the years, Sun has delivered consistent and cycle tested organic cash flow growth, and today the number of compelling investment opportunities is more exciting than ever across our MH, RV and marina platforms."

OPERATING HIGHLIGHTS

Portfolio Occupancy

Total MH and annual RV occupancy was 97.5 percent at March 31, 2022 as compared to 97.3 percent at March 31, 2021, an increase of 20 basis points.

During the quarter ended March 31, 2022, the number of MH and annual RV revenue producing sites increased by 670 sites as compared to an increase of 514 sites during the quarter ended March 31, 2021, a 30.4 percent increase.

Same PropertyResults - MH and RV

For the 425 MH and RV properties owned and operated by the Company since January 1, 2021, the following table reflects the percentage increases, both in total, and by segment, for the quarter ended March 31, 2022:

        Total MH and RV  MH             RV
        Same Property    Same Property  Same Property
Revenue 9.2     %        4.4    %       20.5   %
Expense 12.7    %        8.7    %       17.6   %
NOI     7.7     %        3.0    %       22.9   %

Same Property adjusted occupancy increased to 98.5 percent at March 31, 2022 from 96.9 percent at March 31, 2021, an increase of 160 basis points.

Same PropertyResults - Marina

For the 101 Marina properties owned and operated by the Company since January 1, 2021, the following table reflects the percentage increases for the quarter ended March 31, 2022:

        Marina
        Same Property
Revenue 7.7    %
Expense 15.2   %
NOI     1.2    %

PORTFOLIO ACTIVITY

Acquisitions and Dispositions

During and subsequent to the quarter ended March 31, 2022, the Company acquired the following properties:

Property Name                      Property Type  Sites,              Development Sites  State / Province or Country  Total            Month Acquired
                                                  Wet Slips and                                                       Purchase Price
                                                  Dry Storage Spaces                                                  (in millions)
Harrison Yacht Yard                Marina         21                  --                 MD                           $       5.8      January
Outer Banks                        Marina         196                 --                 NC                                   5.0      January
Jarrett Bay Boatworks              Marina         12                  --                 NC                                   51.4     February
Tower Marine                       Marina         446                 --                 MI                                   20.0     March
Sandy Bay                          MH             616                 570                UK                                   183.5    March
Subtotal                                          1,291               570                                             $       265.7
Acquisitions subsequent to quarter end
Park Holidays                      MH             15,906              1,140              UK                           $       1,242.1  April
Christies Parks                    MH             249                 --                 UK                                   10.1     April
Bluewater Yacht Sales              Marina         200                 --                 Various                              25.0     April
Jarrett Bay Bluewater Yacht Sales  Marina         --                  --                 Various                              17.6     April
Subtotal                                          16,355              1,140                                           $       1,294.8
Total acquisitions                                17,646              1,710                                           $       1,560.5

Combined with an existing marina.

Includes 40 owned properties.

Combined with an existing adjacent MH community.

During and subsequent to the quarter ended March 31, 2022, the Company acquired 45 properties totaling 17,646 sites, wet slips and dry storage spaces and 1,710 sites for expansion for a total purchase price of $1.6 billion.

During the quarter ended March 31, 2022, the Company sold two MH communities and one property containing both MH and RV sites located in Florida for $29.6 million. The gain from the sale of the properties was $13.4 million.

Development Activity

During the quarter ended March 31, 2022, the Company completed the construction of 25 expansion sites in one RV resort.

BALANCE SHEET, CAPITAL MARKETS ACTIVITY AND OTHER ITEMS

Debt

As of March 31, 2022, the Company had approximately $6.1 billion in debt outstanding. The weighted average interest rate was 3.0 percent and the weighted average maturity was 8.1 years. At March 31, 2022, the Company's net debt to trailing twelve month Recurring EBITDA ratio was 5.9 times. The Company had $90.4 million of unrestricted cash on hand.

Senior Credit Facility Amendment

On April 7, 2022, in conjunction with the closing of the Park Holidays acquisition, Sun Communities Operating Limited Partnership (the "Operating Partnership") as borrower, and the Company, as guarantor, and certain lenders entered into Amendment No. 1 to the Fourth Amended and Restated Credit Agreement and Other Loan Documents (the "Credit Facility Amendment"), which amended the Operating Partnership's Senior Credit Facility.

The Credit Facility Amendment increased the aggregate amount of the Operating Partnership's Senior Credit Facility to $4.2 billion with the ability to upsize the total borrowings by an additional $800 million, subject to certain conditions. The increased aggregate amount under the Senior Credit Facility consists of the following: (a) a revolving loan in the amount up to $3.05 billion and (b) a term loan facility of $1.15 billion, with the ability to draw funds from the combined facilities in U.S. dollars, Pounds sterling, Euros, Canadian dollars and Australian dollars, subject to certain limitations. The Credit Facility Amendment extends the maturity date of the revolving loan facility to April 7, 2027, assuming the Operating Partnership's exercise of each of its two six-month extension options, and, further, the Credit Facility Amendment extends the maturity date of the term loan facility to April 7, 2025, which may not be extended.

Prior to the amendment, the Senior Credit Facility permitted aggregate borrowings of up to $2.0 billion, with an accordion feature that allowed for additional commitments of up to $1.0 billion, subject to the satisfaction of certain conditions.

The Senior Credit Facility bears interest at a floating rate based on Adjusted Term SOFR, the Adjusted Eurocurrency Rate, the Daily RFR Rate, the Australian Bank Bill Swap Bid Rate (BBSY), the Daily SONIA Rate or the Canadian Dollar Offered Rate, as applicable, plus, in all cases, a margin which can range from 0.725 percent to 1.6 percent, subject to certain adjustments. As of March 31, 2022, the margin based on the Operating Partnership's credit ratings would have been 0.85 percent on the revolving loan facility and 0.95 percent on the term loan facility.

Senior Unsecured Notes

On April 12, 2022, the Operating Partnership issued $600.0 million of senior unsecured notes with an interest rate of 4.2 percent and a 10-year term, due April 15, 2032 (the "2032 Notes"). The net proceeds from the offering were $592.3 million after deducting underwriters' discounts and estimated offering expenses. The Company used the net proceeds from the offering to repay borrowings outstanding under its Senior Credit Facility.

In connection with the 2032 Notes issuance, the Company settled four 10-year Treasury rate locks totaling $600.0 million and received a settlement payment of $35.3 million. This lowers the effective interest rate on the 2032 Notes from 4.2 percent to 3.6 percent.

Equity Transactions

Forward Share Settlements

In April 2022, the Company settled forward sale agreements with respect to 1,200,000 shares of common stock under its at the market offering sales program sold during the fourth quarter 2021, and 4,025,000 shares of common stock in connection with its November 2021 registered forward equity offering. The aggregate net proceeds from the settlement of these forward sale agreements was $934.9 million. The Company used the net proceeds to repay borrowings outstanding under its Senior Credit Facility.

At the Market Offering

During the quarter ended March 31, 2022, the Company entered into forward sale agreements with respect to 600,503 shares of common stock under its at the market offering program for $107.9 million. These forward sale agreements were not settled as of March 31, 2022, but the Company expects to settle them by the end of the first quarter 2023.

The following table presents the Company's outstanding unsettled forward equity agreements as of April 22, 2022:

Forward Equity                   Shares     Shares     Shares Remaining  Net Proceeds Received  Anticipated Net Proceeds Remaining
Agreements                       Sold       Settled                      (in millions)          (in millions)
Q3 2021 ATM Forward Agreements   107,400    --         107,400           $          --          $                 21.4
Q4 2021 ATM Forward Agreements   1,712,709  1,200,000  512,709                      229.5                         100.3
November 2021 Forward Offering   4,025,000  4,025,000  --                           705.4                         --
Q1 2022 ATM Forward Agreements   600,503    --         600,503                      --                            108.4
Total Forward Equity Agreements  6,445,612  5,225,000  1,220,612         $          934.9       $                 230.1

2022 GUIDANCE

The estimates and assumptions presented below represent a range of possible outcomes and may differ materially from actual results. These estimates include contributions from all acquisitions and capital markets activity completed through the date of this release. These estimates exclude prospective acquisitions 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.

The Company is providing revised or initial 2022 guidance for the following metrics:

                                 Previous Range  Revised Range
                                 FY 2022E        FY 2022E       2Q 2022E
Basic earnings per share         $2.70 - $2.86   $2.46 - $2.58  $0.86 - $0.90
Core FFO per fully diluted Share $7.07 - $7.23   $7.20 - $7.32  $1.97 - $2.01

Refer to page 8 for the reconciliation of Basic earnings per share to Core FFO per diluted Share.

Basic earnings per share and Core FFO per fully diluted Share are calculated independently for each quarter; as a result, the sum of the quarters may differ from the annual calculation.

                                                1Q22     2Q22     3Q22     4Q22
Seasonality of Core FFO per fully diluted Share 18.5 %   27.4 %   35.2 %   18.9 %

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

                                   Previous Range  Revised Range
                                   FY 2022E        FY 2022E       2Q 2022E
MH and RV Same Property NOI growth 6.0% - 6.8%     6.5% - 7.3%    3.5% - 4.3%
Marina Same Property NOI growth    6.0% - 7.4%     6.0% - 7.4%    5.7% - 7.3%

Park Holidays Acquisition Assumptions

The acquisition of Park Holidays was on April 8, 2022.

The following table presents updated estimates based on the actual closing date:

                    Previous Range         Revised Range
                    March - December 2022  April - December 2022
EBITDA              $99.5 - $104.6         $95.3 - $100.4
Income Tax Expense  $20.6 - $21.3          $19.7 - $20.4

Estimated EBITDA contribution is inclusive of general and administrative expenses of $29.1 - $30.5 million in the previous range and $26.1 - $27.5 million in the revised range, respectively.

The following table shows Park Holidays' estimated full year EBITDA seasonality if the transaction had closed on January 1, 2022:

                                     1Q22    2Q22     3Q22     4Q22
Seasonality of Park Holidays' EBITDA 6.7 %   31.6 %   49.9 %   11.8 %

EARNINGS CONFERENCE CALL

A conference call to discuss first quarter results will be held on Tuesday, April 26, 2022 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 10, 2022 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 13727742. 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 March 31, 2022, owned, operated, or had an interest in a portfolio of 603 developed MH, RV and marina properties comprising nearly 159,300 developed sites and over 45,700 wet slips and dry storage spaces in 39 states, Canada, Puerto Rico and the UK.

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 (the "Securities Act"), and the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and we intend that such forward-looking statements will be subject to the safe harbors created thereby. For this purpose, any statements contained in this filing that relate to expectations, beliefs, projections, future plans and strategies, trends or prospective events or developments and similar expressions concerning matters that are not historical facts are deemed to be forward-looking statements. Words such as "forecasts," "intends," "intend," "intended," "goal," "estimate," "estimates," "expects," "expect," "expected," "project," "projected," "projections," "plans," "predicts," "potential," "seeks," "anticipates," "anticipated," "should," "could," "may," "will," "designed to," "foreseeable future," "believe," "believes," "scheduled," "guidance," "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 our current views with respect to future events and financial performance, but involve known and unknown risks and uncertainties, both general and specific to the matters discussed in this filing. These risks and uncertainties may cause our actual results to be materially different from any future results expressed or implied by such forward-looking statements. In addition to the risks described under "Risk Factors" contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2021 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:

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 filing, 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.

Investor Information

RESEARCH COVERAGE
Firm                           Analyst                      Phone                        Email
Bank of America Merrill Lynch  Joshua Dennerlein            (646) 855-1681               joshua.dennerlein@bofa.com
Barclays                       Allison Gelman               (212) 526-3367               allison.gelman@barclays.com
                               Anthony Powell               (212) 526-8768               anthony.powell@barclays.com
Berenberg Capital Markets      Keegan Carl                  (646) 949-9052               keegan.carl@berenberg-us.com
BMO Capital Markets            John Kim                     (212) 885-4115               jp.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                   Samir Khanal                 (212) 888-3796               samir.khanal@evercoreisi.com
                               Steve Sakwa                  (212) 446-9462               steve.sakwa@evercoreisi.com
Green Street Advisors          John Pawlowski               (949) 640-8780               jpawlowski@greenstreetadvisors.com
JMP Securities                 Aaron Hecht                  (415) 835-3963               ahecht@jmpsecurities.com
RBC Capital Markets            Brad Heffern                 (512) 708-6311               brad.heffern@rbccm.com
Robert W. Baird & Co.          Wesley Golladay              (216) 737-7510               wgolladay@rwbaird.com
UBS                            Michael Goldsmith            (212) 713-2951               michael.goldsmith@ubs.com
INQUIRIES
The Company welcomes questions or comments from shareholders, 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 March 31, 2022)

Financial and Operating Highlights

(amounts in millions, except for *)

                                                                                                                                  Quarter Ended
                                                                                                                                  3/31/2022      12/31/2021      9/30/2021      6/30/2021      3/31/2021
Financial Information
Total revenues                                                                                                                    $    548.5     $     542.4     $    684.3     $    603.9     $    442.0
Net income                                                                                                                        $    1.5       $     14.8      $    250.2     $    120.8     $    28.0
Net income attributable to Sun Communities Inc. common stockholders                                                               $    0.7       $     12.8      $    231.8     $    110.8     $    24.8
Basic earnings per share*                                                                                                         $    0.01      $     0.11      $    2.00      $    0.98      $    0.23
Diluted earnings per share*                                                                                                       $    0.01      $     0.11      $    2.00      $    0.98      $    0.23
Cash distributions declared per common share*                                                                                     $    0.88      $     0.83      $    0.83      $    0.83      $    0.83
FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities                                 $    155.3     $     152.3     $    223.1     $    198.0     $    135.9
FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securitiesper share - fully diluted*       $    1.28      $     1.28      $    1.92      $    1.70      $    1.22
Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities                            $    162.8     $     155.8     $    244.5     $    209.6     $    141.0
Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities per share - fully diluted* $    1.34      $     1.31      $    2.11      $    1.80      $    1.26
Recurring EBITDA                                                                                                                  $    221.0     $     208.6     $    314.5     $    268.2     $    190.8
Balance Sheet
Total assets                                                                                                                      $    13,914.2  $     13,494.1  $    12,583.3  $    12,041.0  $    11,454.2
Total debt                                                                                                                        $    6,076.5   $     5,671.8   $    4,689.4   $    4,311.2   $    4,417.9
Total liabilities                                                                                                                 $    6,980.7   $     6,474.6   $    5,488.5   $    5,099.6   $    5,101.5
                                        Quarter Ended
                                        3/31/2022     12/31/2021 9/30/2021     6/30/2021     3/31/2021
Operating Information*
Properties                              603           602        584           569           562
Manufactured home sites                 98,895        98,621     98,301        97,448        96,876
Annual RV sites                         31,121        30,540     29,640        28,807        28,441
Transient RV sites                      29,267        29,847     27,922        27,032        26,295
Total sites                             159,283       159,008    155,863       153,287       151,612
Marina wet slips and dry storage spaces 45,725        45,155     43,615        40,179        39,338
MH occupancy                            96.7    %     96.6    %  96.6    %     96.7    %     96.5    %
Annual RV occupancy                     100.0   %     100.0   %  100.0   %     100.0   %     100.0   %
Blended MH and annual RV occupancy      97.5    %     97.4    %  97.4    %     97.4    %     97.3    %
New home sales volume                   148           149        207           227           149
Pre-owned home sales volume             689           784        955           931           686
Total home sales volume                 837           933        1,162         1,158         835

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

                                 Quarter Ended
                                 3/31/2022  12/31/2021  9/30/2021  6/30/2021  3/31/2021
Revenue Producing Site Net Gains
MH net leased sites              65         321         144        226        127
RV net leased sites              605        489         432        357        387
Total net leased sites           670        810         576        583        514

Consolidated Balance Sheets

(amounts in millions)

                                                              March 31, 2022      December 31, 2021
Assets
Land                                                          $    2,708.0        $     2,556.3
Land improvements and buildings                                    10,169.4             9,958.3
Rental homes and improvements                                      583.1                591.7
Furniture, fixtures and equipment                                  684.8                656.4
Investment property                                                14,145.3             13,762.7
Accumulated depreciation                                           (2,441.5 )           (2,337.2 )
Investment property, net                                           11,703.8             11,425.5
Cash, cash equivalents and restricted cash                         102.6                78.2
Marketable securities                                              158.3                186.9
Inventory of manufactured homes                                    63.3                 51.1
Notes and other receivables, net                                   513.6                469.6
Goodwill                                                           512.7                495.4
Other intangible assets, net                                       334.2                306.8
Other assets, net                                                  525.7                480.6
Total Assets                                                  $    13,914.2       $     13,494.1
Liabilities
Secured debt                                                  $    3,366.6        $     3,380.7
Unsecured debt                                                     2,709.9              2,291.1
Distributions payable                                              104.5                98.4
Advanced reservation deposits and rent                             335.1                242.8
Accrued expenses and accounts payable                              228.0                237.5
Other liabilities                                                  236.6                224.1
Total Liabilities                                                  6,980.7              6,474.6
Commitments and contingencies
Temporary equity                                                   283.9                288.9
Shareholders' Equity
Common stock                                                       1.2                  1.2
Additional paid-in capital                                         8,169.4              8,175.6
Accumulated other comprehensive income                             25.9                 3.1
Distributions in excess of accumulated earnings                    (1,654.6 )           (1,556.0 )
Total Sun Communities, Inc. shareholders' equity                   6,541.9              6,623.9
Noncontrolling interests
Common and preferred OP units                                      86.8                 86.8
Consolidated entities                                              20.9                 19.9
Total noncontrolling interests                                     107.7                106.7
Total Shareholders' Equity                                         6,649.6              6,730.6
Total Liabilities, Temporary Equity and Shareholders' Equity  $    13,914.2       $     13,494.1

Statements of Operations - Quarter to Date Comparison

(In millions, except for per share amounts) (Unaudited)

                                                                  Three Months Ended
                                                                  March 31, 2022   March 31, 2021   Change       % Change
Revenues
Real property (excluding transient)                               $    343.2       $    298.1       $  45.1      15.1    %
Real property - transient                                              45.0             32.5           12.5      38.5    %
Home sales                                                             64.7             52.2           12.5      23.9    %
Service, retail, dining and entertainment                              80.8             50.6           30.2      59.7    %
Interest                                                               6.8              2.6            4.2       161.5   %
Brokerage commissions and other, net                                   8.0              6.0            2.0       33.3    %
Total Revenues                                                         548.5            442.0          106.5     24.1    %
Expenses
Property operating and maintenance                                     129.3            103.6          25.7      24.8    %
Real estate tax                                                        26.1             22.4           3.7       16.5    %
Home costs and selling                                                 45.9             41.6           4.3       10.3    %
Service, retail, dining and entertainment                              70.5             45.4           25.1      55.3    %
General and administrative                                             55.7             38.2           17.5      45.8    %
Catastrophic event-related charges, net                                --               2.4            (2.4  )   N/M
Business combinations                                                  0.5              1.2            (0.7  )   (58.3)        %
Depreciation and amortization                                          148.5            123.9          24.6      19.9    %
Loss on extinguishment of debt                                         0.3              --             0.3       N/A
Interest                                                               45.2             39.5           5.7       14.4    %
Interest on mandatorily redeemable preferred OP units / equity         1.0              1.0            --        --      %
Total Expenses                                                         523.0            419.2          103.8     24.8    %
Income Before Other Items                                              25.5             22.8           2.7       11.8    %
Gain / (loss) on remeasurement of marketable securities                (34.5 )          3.7            (38.2 )   N/M
Loss on foreign currency translation                                   (2.2  )          --             (2.2  )   N/A
Gain on dispositions of properties                                     13.4             --             13.4      N/A
Other expense, net                                                     (0.6  )          (0.5  )        (0.1  )   (20.0)        %
Gain on remeasurement of notes receivable                              0.2              0.4            (0.2  )   (50.0)        %
Income from nonconsolidated affiliates                                 0.9              1.2            (0.3  )   (25.0)        %
Gain on remeasurement of investment in nonconsolidated affiliates      0.1              0.1            --        --      %
Current tax benefit / (expense)                                        (1.3  )          0.2            (1.5  )   N/M
Deferred tax benefit                                                   --               0.1            (0.1  )   N/M
Net Income                                                             1.5              28.0           (26.5 )   (94.6)        %
Less: Preferred return to preferred OP units / equity interests        3.0              2.9            0.1       3.4     %
Less: Income / (loss) attributable to noncontrolling interests         (2.2  )          0.3            (2.5  )   N/M
Net Income Attributable to Sun Communities, Inc.                  $    0.7         $    24.8        $  (24.1 )   (97.2)        %
Weighted average common shares outstanding - basic                     115.3            107.9          7.4       6.9     %
Weighted average common shares outstanding - diluted                   115.9            108.2          7.7       7.1     %
Basic earnings per share                                          $    0.01        $    0.23        $  (0.22 )   (95.7)        %
Diluted earnings per share                                        $    0.01        $    0.23        $  (0.22 )   (95.7)        %

N/M = Percentage change is not meaningful.

N/A = Percentage change is not applicable.

Outstanding Securities and Capitalization

(amounts in millions, units / shares outstanding in thousands, except for *)

Outstanding Securities - As of March 31, 2022
                              Number of Units / Shares Outstanding  Conversion Rate*  If Converted  Issuance Price*  Annual Distribution Rate
                                                                                                    Per Unit
Non-convertible Securities
Common shares                 116,207                               N/A               N/A           N/A              $3.52^
Convertible Securities
Common OP units               2,551                                 1.0000            2,551         N/A              Mirrors common shares distributions
Series A-1 preferred OP units 272                                   2.4390            664           $       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   85                                    0.6897            59            $       100      5.50              %
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.

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

Capitalization - As of March 31, 2022
Equity                                 Shares   Share Price*   Total
Common shares                          116,207  $      175.29  $  20,369.9
Common OP units                        2,551    $      175.29     447.2
Subtotal                               118,758                 $  20,817.1
Preferred OP units, as converted       2,802    $      175.29     491.2
Total diluted shares outstanding       121,560                 $  21,308.3
Debt
Secured debt                                                   $  3,366.6
Unsecured debt                                                    2,709.9
Total debt                                                     $  6,076.5
Total Capitalization                                           $  27,384.8

Reconciliations to Non-GAAP Financial Measures

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

                                                                                                                                 Three Months Ended
                                                                                                                                 March 31, 2022   March 31, 2021
Net Income Attributable to Sun Communities, Inc. Common Shareholders                                                             $    0.7         $    24.8
Adjustments
Depreciation and amortization                                                                                                         148.3            123.8
(Gain) / loss on remeasurement of marketable securities                                                                               34.5             (3.7  )
Gain on remeasurement of investment in nonconsolidated affiliates                                                                     (0.1  )          (0.1  )
Gain on remeasurement of notes receivable                                                                                             (0.2  )          (0.4  )
Loss attributable to noncontrolling interests                                                                                         (2.2  )          (0.1  )
Preferred return to preferred OP units                                                                                                2.8              0.5
Gain on dispositions of properties                                                                                                    (13.4 )          --
Gain on dispositions of assets, net                                                                                                   (15.1 )          (8.2  )
FFO Attributable to Sun Communities, Inc. Common Shareholders and Dilutive Convertible Securities                                $    155.3       $    136.6
Adjustments
Business combination expense and other acquisition related costs                                                                      3.1              1.9
Loss on extinguishment of debt                                                                                                        0.3              --
Catastrophic event-related charges, net                                                                                               --               2.4
Loss of earnings - catastrophic event-related                                                                                         --               0.2
Loss on foreign currency translation                                                                                                  2.2              --
Other adjustments, net                                                                                                                1.9              (0.1  )
Core FFO Attributable to Sun Communities, Inc. Common Shareholders and Dilutive Convertible Securities                           $    162.8       $    141.0
Weighted average common shares outstanding - basic                                                                                    115.3            107.9
Add
Common shares dilutive effect from forward equity sale                                                                                0.2              0.2
Restricted stock                                                                                                                      0.4              0.2
Common OP units                                                                                                                       2.5              2.6
Common stock issuable upon conversion of certain preferred OP units                                                                   2.8              0.8
Weighted Average Common Shares Outstanding - Fully Diluted                                                                            121.2            111.7
FFO Attributable to Sun Communities, Inc. Common Shareholders and Dilutive Convertible Securities Per Share - Fully Diluted      $    1.28        $    1.22
Core FFO Attributable to Sun Communities, Inc. Common Shareholders and Dilutive Convertible Securities Per Share - Fully Diluted $    1.34        $    1.26

Reconciliation of Basic Earnings per Share to Core FFO per Fully Diluted Share for Expected Full Year and Second Quarter 2022

                                               FY 2022E              Q2 2022E
                                               Low        High       Low        High
Basic earnings per share                       $ 2.46     $ 2.58     $ 0.86     $ 0.90
Depreciation and amortization                    4.65       4.65       1.12       1.12
Gain on sale of assets                           (0.46 )    (0.46 )    (0.09 )    (0.09 )
NCI and preferred return to preferred OP units   0.09       0.09       0.03       0.03
Other adjustments*                               0.46       0.46       0.05       0.05
Core FFO per fully diluted Share               $ 7.20     $ 7.32     $ 1.97     $ 2.01

* Other adjustments include the categories presented in the reconciliation of Net Income to Core FFO table in the supplemental.

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

(amounts in millions)

                                                                     Three Months Ended
                                                                     March 31, 2022   March 31, 2021
Net Income Attributable to Sun Communities, Inc. Common Shareholders $    0.7         $    24.8
Interest income                                                           (6.8  )          (2.6  )
Brokerage commissions and other revenues, net                             (8.0  )          (6.0  )
General and administrative expense                                        55.7             38.2
Catastrophic event-related charges, net                                   --               2.4
Business combination expense                                              0.5              1.2
Depreciation and amortization                                             148.5            123.9
Loss on extinguishment of debt                                            0.3              --
Interest expense                                                          45.2             39.5
Interest on mandatorily redeemable preferred OP units / equity            1.0              1.0
(Gain) / loss on remeasurement of marketable securities                   34.5             (3.7  )
Loss on foreign currency translation                                      2.2              --
Gain on disposition of properties                                         (13.4 )          --
Other expense, net                                                        0.6              0.5
Gain on remeasurement of notes receivable                                 (0.2  )          (0.4  )
Income from nonconsolidated affiliates                                    (0.9  )          (1.2  )
Gain on remeasurement of investment in nonconsolidated affiliates         (0.1  )          (0.1  )
Current tax (benefit) / expense                                           1.3              (0.2  )
Deferred tax benefit                                                      --               (0.1  )
Preferred return to preferred OP units / equity interests                 3.0              2.9
Less: Income / (loss) attributable to noncontrolling interests            (2.2  )          0.3
NOI                                                                  $    261.9       $    220.4
                                              Three Months Ended
                                              March 31, 2022   March 31, 2021
Real Property NOI                             $       232.8    $       204.6
Home Sales NOI                                        18.8             10.6
Service, retail, dining and entertainment NOI         10.3             5.2
NOI                                           $       261.9    $       220.4

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

(amounts in millions)

                                                                     Three Months Ended
                                                                     March 31, 2022   March 31, 2021
Net Income Attributable to Sun Communities, Inc. Common Shareholders $    0.7         $    24.8
Adjustments
Depreciation and amortization                                             148.5            123.9
Loss on extinguishment of debt                                            0.3              --
Interest expense                                                          45.2             39.5
Interest on mandatorily redeemable preferred OP units / equity            1.0              1.0
Current tax (benefit) / expense                                           1.3              (0.2  )
Deferred tax benefit                                                      --               (0.1  )
Income from nonconsolidated affiliates                                    (0.9  )          (1.2  )
Less: Gain on dispositions of properties                                  (13.4 )          --
Less: Gain on dispositions of assets, net                                 (15.1 )          (8.2  )
EBITDAre                                                             $    167.6       $    179.5
Adjustments
Catastrophic event-related charges, net                                   --               2.4
Business combination expense                                              0.5              1.2
(Gain) / loss on remeasurement of marketable securities                   34.5             (3.7  )
Loss on foreign currency translation                                      2.2              --
Other expense, net                                                        0.6              0.5
Gain on remeasurement of notes receivable                                 (0.2  )          (0.4  )
Gain on remeasurement of investment in nonconsolidated affiliates         (0.1  )          (0.1  )
Preferred return to preferred OP units / equity interests                 3.0              2.9
(Income) / loss attributable to noncontrolling interests                  (2.2  )          0.3
Plus: Gain on dispositions of assets, net                                 15.1             8.2
Recurring EBITDA                                                     $    221.0       $    190.8

Non-GAAP and Other Financial Measures

Debt Analysis

(amounts in millions, except for *)

                                                                                  Quarter Ended
                                                                                  3/31/2022        12/31/2021       9/30/2021        6/30/2021        3/31/2021
Debt Outstanding
Secured debt                                                                      $   3,366.6      $   3,380.7      $   3,403.4      $   3,457.7      $   3,472.9
Unsecured debt
Senior unsecured notes                                                                1,186.7          1,186.4          591.3            591.7            --
Line of credit and other debt                                                         1,453.3          1,034.8          624.8            191.9            875.1
Preferred Equity - Sun NG Resorts - mandatorily redeemable                            35.2             35.2             35.2             35.2             35.2
Preferred OP units - mandatorily redeemable                                           34.7             34.7             34.7             34.7             34.7
Total unsecured debt                                                                  2,709.9          2,291.1          1,286.0          853.5            945.0
Total debt                                                                        $   6,076.5      $   5,671.8      $   4,689.4      $   4,311.2      $   4,417.9
% Fixed / Floating*
Fixed                                                                                 76.2    %        81.8    %        86.7    %        94.7    %        79.3    %
Floating                                                                              23.8    %        18.2    %        13.3    %        5.3     %        20.7    %
Total                                                                                 100.0   %        100.0   %        100.0   %        100.0   %        100.0   %
Weighted Average Interest Rates*
Secured debt                                                                          3.78    %        3.78    %        3.78    %        3.75    %        3.75    %
Senior unsecured notes                                                                2.55    %        2.55    %        2.70    %        2.70    %        --      %
Line of credit and other debt                                                         1.25    %        0.98    %        0.98    %        0.93    %        1.77    %
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                                                                         2.96    %        3.04    %        3.30    %        3.52    %        3.39    %
Debt Ratios*
Net Debt / Recurring EBITDA (TTM)                                                     5.9              5.7              4.9              5.1              6.1
Net Debt / Enterprise Value                                                           21.9    %        18.0    %        17.1    %        16.8    %        19.7    %
Net Debt / Gross Assets                                                               36.6    %        35.4    %        31.2    %        29.6    %        31.8    %
Coverage Ratios*
Recurring EBITDA (TTM) / Interest                                                     6.2              6.2              6.1              5.6              5.0
Recurring EBITDA(TTM) / Interest + Pref. Distributions + Pref. Stock Distribution     6.0              6.0              6.0              5.5              4.8
Maturities / Principal Amortization Next Five Years          2022       2023       2024       2025         2026
Secured debt
Maturities                                                 $ 70.7     $ 185.6    $ 315.3    $ 50.5       $ 521.6
Principal amortization                                       46.0       60.9       57.4       54.0         45.9
Line of credit and other debt                                6.8        10.0       213.0      1,223.5      --
Preferred Equity - Sun NG Resorts - mandatorily redeemable   --         --         33.4       1.8          --
Preferred OP units - mandatorily redeemable                  --         --         27.4       --           --
Total                                                      $ 123.5    $ 256.5    $ 646.5    $ 1,329.8    $ 567.5
Weighted average rate of maturities*                         4.48  %    4.08  %    4.47  %    4.04    %    3.75  %

Same PropertySummary - MH / RV

(amounts in millions)

                                    Three Months Ended
                                    Total Same Property - MH/RV                            MH                                                             RV
                                    March 31, 2022   March 31, 2021   Change    % Change   March 31, 2022   March 31, 2021   Change      % Change         March 31, 2022   March 31, 2021   Change      % Change
Financial Information
Revenue
Real property (excluding transient) $       233.1    $       218.7    $   14.4  6.6  %     $       182.4    $       174.9    $  7.5      4.3     %        $       50.7     $       43.8     $  6.9      15.5    %
Real property - transient                   39.1             30.3         8.8   28.9 %             0.5              0.6         (0.1 )   (23.1)        %          38.6             29.7        8.9      30.0    %
Other                                       7.6              7.2          0.4   5.5  %             4.9              4.4         0.5      11.1    %                2.7              2.8         (0.1 )   (3.3)        %
Total Operating                             279.8            256.2        23.6  9.2  %             187.8            179.9       7.9      4.4     %                92.0             76.3        15.7     20.5    %
Expense
Property Operating                          88.9             78.9         10.0  12.7 %             47.7             43.9        3.8      8.7     %                41.2             35.0        6.2      17.6    %
Real Property NOI                   $       190.9    $       177.3    $   13.6  7.7  %     $       140.1    $       136.0    $  4.1      3.0     %        $       50.8     $       41.3     $  9.5      22.9    %

Percentages are calculated based on unrounded numbers.

                                   As of
                                   March 31, 2022   March 31, 2021   Change      % Change
Other Information
Number of properties                    425              425            --
MH occupancy                            97.3  %
RV occupancy                            100.0 %
MH & RV blended occupancy               97.9  %
Adjusted MH occupancy                   98.1  %
Adjusted RV occupancy                   100.0 %
Adjusted MH & RV blended occupancy      98.5  %          96.9  %        1.6  %
Sites available for development         7,645            8,243          (598 )
Monthly base rent per site - MH    $    620         $    597         $  23       3.8%
Monthly base rent per site - RV    $    553         $    522         $  31       6.0%
Monthly base rent per site - Total $    604         $    580         $  24       4.2%

Same PropertySummary - Marina

(amounts in millions)

                                    Three Months Ended
Financial Information               March 31, 2022   March 31, 2021   Change   % Change
Revenue
Real property (excluding transient) $       45.8     $       43.3     $   2.5  5.6  %
Real property - transient                   1.4              0.9          0.5  58.7 %
Other                                       2.3              1.7          0.6  34.3 %
Total Operating                             49.5             45.9         3.6  7.7  %
Expense
Property Operating                          24.4             21.1         3.3  15.2 %
Real Property NOI                   $       25.1     $       24.8     $   0.3  1.2  %

Percentages are calculated based on unrounded numbers.

                     As of
                     March 31, 2022  March 31, 2021  Change  % Change
Other Information
Number of properties 101             101             --      --   %

Acquisitions and Other Summary

(amounts in millions, except for statistical data)

                                    Three Months Ended
                                    March 31, 2022
Financial Information
Revenues
Real property (excluding transient) $      27.8
Real property - transient                  4.5
Other                                      2.0
Total Operating                            34.3
Expenses
Property Operating                         17.6
Real Property NOI                   $      16.7
Other Information                   March 31, 2022
Number of properties                       77
Occupied sites                             5,245
Developed sites                            5,898
Occupancy %                                88.9   %
Transient sites                            7,518
Wet slip and dry storage spaces            10,002

Acquisitions and Other results net $20.4 million of certain utility revenue against the related utility expense in property operating and maintenance expense for the quarter ended March 31, 2022.

Home Sales Summary

(amounts in millions, except for *)

                                         Three Months Ended
                                         March 31, 2022     March 31, 2021     Change        % Change
Financial Information
New Homes
New home sales                           $    26.6          $    23.0          $  3.6        15.7    %
New home cost of sales                        21.6               18.7             2.9        15.5    %
Gross profit - new homes                      5.0                4.3              0.7        16.3    %
Gross margin % - new homes                    18.8    %          18.7    %        0.1    %
Average selling price - new homes*       $    179,730       $    154,174       $  25,556     16.6    %
Pre-owned Homes
Pre-owned home sales                     $    38.1          $    29.2          $  8.9        30.5    %
Pre-owned home cost of sales                  19.8               18.6             1.2        6.5     %
Gross profit - pre-owned homes                18.3               10.6             7.7        72.6    %
Gross margin % - pre-owned homes              48.0    %          36.4    %        11.6   %
Average selling price - pre-owned homes* $    55,298        $    42,605        $  12,693     29.8    %
Total Home Sales
Revenue from home sales                  $    64.7          $    52.2          $  12.5       23.9    %
Cost of home sales                            41.4               37.3             4.1        11.0    %
Home selling expenses                         4.5                4.3              0.2        4.7     %
Home Sales NOI                           $    18.8          $    10.6          $  8.2        77.4    %
Other Information
New home sales volume*                        148                149              (1     )   (0.7)        %
Pre-owned home sales volume*                  689                686              3          0.4     %
Total home sales volume*                      837                835              2          0.2     %

Rental Program Summary

(amounts in millions, except for *)

                                                     Three Months Ended
                                                     March 31, 2022   March 31, 2021   Change        % Change
Financial Information
Revenues
Home rent                                            $       16.1     $       17.0     $  (0.9   )   (5.3)        %
Site rent                                                    16.1             19.1        (3.0   )   (15.7)        %
Total                                                        32.2             36.1        (3.9   )   (10.8)        %
Expenses
Rental Program operating and maintenance                     4.9              5.2         (0.3   )   (5.8)        %
Rental Program NOI                                   $       27.3     $       30.9     $  (3.6   )   (11.7)        %
Other Information
Number of sold rental homes*                                 177              211         (34    )   (16.1)        %
Number of occupied rentals, end of period*                   9,467            11,473      (2,006 )   (17.5)        %
Investment in occupied rental homes, end of period   $       541.9    $       621.9    $  (80.0  )   (12.9)        %
Weighted average monthly rental rate, end of period* $       1,139    $       1,055    $  84         8.0     %

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.

Marina Summary

(amounts in millions, except for statistical data)

                                           Three Months Ended
                                           March 31, 2022   March 31, 2021   Change     % Change
Financial Information
Revenues
Real property (excluding transient)        $       67.0     $       46.1     $   20.9   45.3  %
Real property - transient                          2.5              0.9          1.6    177.8 %
Other                                              2.9              1.6          1.3    81.3  %
Total Operating                                    72.4             48.6         23.8   49.0  %
Expenses
Property Operating                                 33.2             23.6         9.6    40.7  %
Real Property NOI                                  39.2             25.0         14.2   56.8  %
Service, retail, dining and entertainment
Revenue                                            71.2             44.4         26.8   60.4  %
Expense                                            59.8             38.0         21.8   57.4  %
NOI                                                11.4             6.4          5.0    78.1  %
Marina NOI                                 $       50.6     $       31.4     $   19.2   61.1  %
Statistical information
Number of properties                               128              110          18     16.4  %
Total wet slips and dry storage spaces             45,725           39,338       6,387  16.2  %

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

We have reclassified utility revenue of $4.3 million and $2.6 million for the three months ended March 31, 2022 and 2021, to reflect the utility expenses associated with our marina properties portfolio net of recovery.

MH and RV Property Summary
                                3/31/2022 12/31/2021  9/30/2021    6/30/2021    3/31/2021
FLORIDA
Properties                      129       132         131          129          128
MH & Annual RV Developed sites  40,774    40,783      40,500       40,171       40,011
Occupied MH & Annual RV         40,046    40,019      39,747       39,402       39,283
MH & Annual RV Occupancy %      98.2   %  98.1   %    98.1   %     98.1   %     98.2   %
Transient RV sites              5,648     5,950       6,163        5,895        5,823
Sites for development           1,243     1,268       1,414        1,414        1,497
MICHIGAN
Properties                      84        84          83           75           74
MH & Annual RV Developed sites  32,318    32,257      31,997       29,600       29,092
Occupied MH & Annual RV         31,132    31,061      30,782       28,671       28,145
MH & Annual RV Occupancy %      96.3   %  96.3   %    96.2   %     96.9   %     96.7   %
Transient RV sites              806       869         554          509          541
Sites for development           1,422     1,422       1,481        1,182        1,182
CALIFORNIA
Properties                      36        36          37           36           36
MH & Annual RV Developed sites  6,759     6,787       6,760        6,736        6,734
Occupied MH & Annual RV         6,691     6,672       6,642        6,613        6,609
MH & Annual RV Occupancy %      99.0   %  98.3   %    98.3   %     98.2   %     98.1   %
Transient RV sites              2,174     2,147       2,410        2,416        2,418
Sites for development           694       534         534          127          127
TEXAS
Properties                      30        30          26           25           24
MH & Annual RV Developed sites  8,257     8,192       8,004        7,947        7,928
Occupied MH & Annual RV         8,071     8,006       7,805        7,731        7,671
MH & Annual RV Occupancy %      97.7   %  97.7   %    97.5   %     97.3   %     96.8   %
Transient RV sites              2,475     2,576       2,131        1,835        1,773
Sites for development           1,184     1,184       1,066        1,194        1,275
ONTARIO, CANADA
Properties                      16        16          16           16           16
MH & Annual RV Developed sites  4,410     4,363       4,361        4,302        4,199
Occupied MH & Annual RV         4,410     4,363       4,361        4,302        4,199
MH & Annual RV Occupancy %      100.0  %  100.0  %    100.0  %     100.0  %     100.0  %
Transient RV sites              827       874         807          870          964
Sites for development           1,429     1,429       1,525        1,525        1,525
CONNECTICUT
Properties                      16        16          16           16           16
MH & Annual RV Developed sites  1,896     1,902       1,901        1,901        1,897
Occupied MH & Annual RV         1,756     1,765       1,760        1,757        1,746
MH & Annual RV Occupancy %      92.6   %  92.8   %    92.6   %     92.4   %     92.0   %
Transient RV sites              109       103         104          104          108
Sites for development           --        --          --           --           --
MAINE
Properties                      15        15          13           13           13
MH & Annual RV Developed sites  2,449     2,424       2,220        2,204        2,190
Occupied MH & Annual RV         2,365     2,339       2,136        2,127        2,119
MH & Annual RV Occupancy %      96.6   %  96.5   %    96.2   %     96.5   %     96.8   %
Transient RV sites              981       1,007       776          792          805
Sites for development           180       180         30           30           30
ARIZONA
Properties                      12        12          12           14           14
MH & Annual RV Developed sites  4,184     4,123       4,071        4,401        4,391
Occupied MH & Annual RV         3,994     3,917       3,853        4,116        4,101
MH & Annual RV Occupancy %      95.5   %  95.0   %    94.6   %     93.5   %     93.4   %
Transient RV sites              1,124     1,185       1,237        1,260        1,270
Sites for development           --        --          --           --           --
INDIANA
Properties                      12        12          12           12           12
MH & Annual RV Developed sites  3,184     3,174       3,057        3,087        3,087
Occupied MH & Annual RV         3,049     3,047       2,963        2,970        2,961
MH & Annual RV Occupancy %      95.8   %  96.0   %    96.9   %     96.2   %     95.9   %
Transient RV sites              992       1,002       1,089        1,089        1,089
Sites for development           177       177         204          277          277
NEW JERSEY
Properties                      11        11          9            8            8
MH & Annual RV Developed sites  2,599     2,554       2,551        2,396        2,366
Occupied MH & Annual RV         2,599     2,554       2,551        2,396        2,366
MH & Annual RV Occupancy %      100.0  %  100.0  %    100.0  %     100.0  %     100.0  %
Transient RV sites              1,395     1,436       899          762          794
Sites for development           262       262         262          262          262
COLORADO
Properties                      10        10          10           10           10
MH & Annual RV Developed sites  2,552     2,552       2,552        2,453        2,453
Occupied MH & Annual RV         2,450     2,442       2,431        2,420        2,395
MH & Annual RV Occupancy %      96.0   %  95.7   %    95.3   %     98.7   %     97.6   %
Transient RV sites              987       987         987          987          962
Sites for development           1,744     1,744       1,629        1,225        1,250
NEW HAMPSHIRE
Properties                      10        10          10           10           10
MH & Annual RV Developed sites  1,743     1,748       1,777        1,777        1,776
Occupied MH & Annual RV         1,736     1,740       1,769        1,769        1,769
MH & Annual RV Occupancy %      99.6   %  99.5   %    99.5   %     99.5   %     99.6   %
Transient RV sites              655       650         602          602          456
Sites for development           111       111         111          151          151
NEW YORK
Properties                      10        10          10           10           10
MH & Annual RV Developed sites  1,495     1,482       1,457        1,457        1,452
Occupied MH & Annual RV         1,466     1,455       1,432        1,428        1,415
MH & Annual RV Occupancy %      98.1   %  98.2   %    98.3   %     98.0   %     97.5   %
Transient RV sites              1,646     1,659       1,684        1,684        1,689
Sites for development           371       371         371          371          371
VIRGINIA
Properties                      10        10          9            9            8
MH & Annual RV Developed sites  1,259     1,253       1,238        1,198        1,179
Marina Property Summary
                                        3/31/2022  12/31/2021  9/30/2021  6/30/2021  3/31/2021
FLORIDA
Properties                              20         20          19         18         16
Total wet slips and dry storage spaces  5,235      5,233       4,825      4,528      4,274
RHODE ISLAND
Properties                              12         12          12         11         11
Total wet slips and dry storage spaces  3,465      3,485       3,485      3,302      3,302
CONNECTICUT
Properties                              11         11          11         11         11
Total wet slips and dry storage spaces  3,307      3,299       3,299      3,299      3,299
CALIFORNIA
Properties                              9          9           8          7          5
Total wet slips and dry storage spaces  4,118      3,940       3,527      2,884      2,297
MARYLAND
Properties                              9          9           8          8          8
Total wet slips and dry storage spaces  2,665      2,645       2,409      2,409      2,409
MASSACHUSETTS
Properties                              9          9           9          9          9
Total wet slips and dry storage spaces  2,518      2,546       2,546      2,546      2,546
NEW YORK
Properties                              8          8           8          8          8
Total wet slips and dry storage spaces  2,822      2,783       2,783      2,783      2,783
OTHER STATES
Properties                              50         47          45         42         42
Total wet slips and dry storage spaces  21,595     21,224      20,741     18,428     18,428
TOTAL - MARINA PORTFOLIO
Properties                              128        125         120        114        110
Total wet slips and dry storage spaces  45,725     45,155      43,615     40,179     39,338

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

Acquisitions, Development and Capital Improvements

(amounts in millions, except for *)

                                                Three Months Ended    Year Ended
                                                March 31, 2022        December 31, 2021       December 31, 2020
Financial information                           MH / RV    Marina     MH / RV      Marina     MH / RV    Marina
Acquisitions                                    $   214.2  $   127.0  $   944.3    $   852.9  $   571.9  $   2,533.7
Expansion and Development                           45.1       2.3        191.8        9.9        248.2      --
Recurring Capital Expenditures                      11.5       4.3        45.3         19.3       31.4       2.1
Lot Modifications                                   6.4    N/A            28.8     N/A            29.4   N/A
Growth Projects                                     7.2        15.5       25.6         51.4       28.3       --
Rebranding                                          3.7    N/A            6.1      N/A        N/A        N/A
Total                                           $   288.1  $   149.1  $   1,241.9  $   933.5  $   909.2  $   2,535.8
Other Information
Recurring Capital Expenditures Average / Site*  $   90     $   109    $   371      $   491    $   265    N/A

Acquisitions include intangibles and goodwill included in purchase price.

Operating Statistics for MH and Annual RVs

Locations                          Resident Move-outs  Net Leased Sites  New Home Sales  Pre-owned Home Sales  Brokered
                                                                                                               Re-sales
Florida                            264                 343               49              75                    451
Michigan                           156                 71                13              385                   60
Ontario, Canada                    213                 47                7               2                     59
Texas                              96                  65                14              79                    30
Arizona                            20                  77                18              4                     53
Indiana                            12                  2                 --              56                    5
Ohio                               20                  (4       )        --              28                    2
California                         25                  19                7               1                     34
Colorado                           1                   8                 9               7                     12
Connecticut                        16                  (9       )        6               --                    6
New York                           41                  11                3               2                     2
New Hampshire                      --                  (4       )        --              1                     11
Maine                              41                  26                2               4                     4
New Jersey                         89                  45                --              --                    4
Virginia                           86                  4                 --              3                     1
Other states                       285                 (31      )        20              42                    34
Three Months Ended March 31, 2022  1,365               670               148             689                   768
Total For Year Ended  Resident Move-outs  Net Leased Sites  New Home Sales  Pre-owned Home Sales  Brokered
                                                                                                  Re-sales
2021                  5,276               2,483             732             3,356                 3,528
2020                  5,365               2,505             570             2,296                 2,557
Percentage Trends  Resident Move-outs  Resident
                                       Re-sales
2022 TTM           2.8       %         7.5  %
2021               2.7       %         8.4  %
2020               3.3       %         6.9  %

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 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. Furthermore, 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 Property results for our MH and RV properties reflect constant currency for comparative purposes. Canadian currency figures in the prior comparative period have been translated at 2022 average exchange rates.

(3) The Same Property MH and RV blended occupancy for 2022 is derived from 124,118 developed sites, of which 121,526 were occupied. The Same Property adjusted MH and RV blended occupancy percentage is derived from 123,346 developed sites, of which 121,526 were occupied. The number of developed sites excludes RV transient sites and nearly 1,100 recently completed but vacant MH expansion sites.

The Same Property adjusted MH and RV blended occupancy percentage for 2021 has been adjusted to reflect incremental period-over-period growth from newly rented expansion sites and the conversion of transient RV sites to annual RV sites.

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

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

(6) Other expenses, net was as follows (in millions):

                                    Three Months Ended
                                    March 31, 2022  March 31, 2021
Contingent consideration expense    $    --         $    (0.1 )
Repair reserve on repossessed homes      (0.6 )          (0.4 )
Other expenses, net                 $    (0.6 )     $    (0.5 )

(7) Business combination expense and other acquisition related costs represent (a) 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, and (b) nonrecurring integration expenses associated with new acquisitions during the three months ended March 31, 2022 and 2021, and (c) dead deal costs related to acquisitions and (d) costs associated with the termination of the bridge loan commitment during the three months ended March 31, 2022 related to the acquisition of Park Holidays.

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

                                 Three Months Ended
                                 March 31, 2022   March 31, 2021
Contingent consideration expense $       --       $    0.1
Deferred tax benefit                     --            (0.2 )
RV rebranding non-recurring cost         1.9           --
Other adjustments, net           $       1.9      $    (0.1 )

(9) Line of credit and other debt includes borrowings under the Company's $2.0 billion Senior Credit Facility and a $28.4 million unsecured term loan which had been secured prior to July 1, 2021.

Line of credit and other debt previously included borrowings under the Company's $2.0 billion credit facility, the debt under the Company's $12.0 million MH floor plan facility which was terminated in October 2021, and the unsecured term loan which had been secured prior to July 1, 2021.

(10) Same Property results for our MH and RV properties net $19.6 million and $17.3 million of certain utility revenue against the related utility expense in property operating and maintenance expense for the three months ended March 31, 2022 and 2021, respectively.

(11) Same Property supplies and repair expense for our MH and RV properties excludes $0.4 million for the three months ended March 31, 2021, of expenses incurred for recently acquired properties to bring the properties up to the Company's operating standards, including items such as tree trimming and painting costs that do not meet the Company's capitalization policy.

(12) Same Property results for our marina properties net $2.5 million and $2.6 million of utility revenue against the related utility expense in property operating and maintenance expense for the three months ended March 31, 2022 and 2021, respectively.

(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 recent acquisitions, recently opened ground-up development projects in stabilization and properties undergoing redevelopment.

(16) MH and annual RV developed sites, Occupied MH and annual RV, and MH and annual RV occupancy percentage includes MH and annual RV sites, and excludes transient RV sites, as applicable.

(17) As of March 31, 2022, total portfolio MH occupancy was 96.7 percent inclusive of the impact of over 1,000 recently constructed but vacant MH expansion sites, and annual RV occupancy was 100.0 percent.

(18) Total sites for development were comprised of approximately 72.8 percent for expansion, 22.4 percent for greenfield development and 4.8 percent for redevelopment.

(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. Expenditures consist of capital improvements identified during due diligence that are necessary to bring the communities, resorts and marinas to the Company's operating standards. These costs for the three months ended March 31, 2022 include $20.0 million at our MH and RV properties and $42.6 million at our marina properties. For the years ended December 31, 2021 and 2020, these costs were $75.8 million at our MH and RV properties and $100.7 million at our marina properties, and $40.6 million at our MH and RV properties, respectively. These include items such as: upgrading clubhouses; landscaping; new street light systems; new mail delivery systems; pool renovation including larger decks, heaters, and furniture; new maintenance facilities; lot modifications; and new signage including main signs and internal road signs. These are considered acquisition costs and although identified during due diligence, often require 24 to 36 months after closing to complete.

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

(21) 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.

(22) 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.

(23) 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.

(24) Rebranding includes new signage at our RV resorts and costs of building an RV mobile application and updated website.

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 2022.3.31

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