Table of Contents                    

Summary - Earnings Press Release	i - vii
Investor Information	1
Portfolio Overview	2
Financial Information
Financial and Operating Highlights	3
Balance Sheets	4
Statements of Operations	5
Outstanding Securities and Capitalization	6
Reconciliations to Non-GAAP Financial Measures	7
Reconciliation of Net Income to Funds from Operations	8
Reconciliation of Net Income to Recurring EBITDA	9
Reconciliation of Net Income to Net Operating Income	10
Non-GAAP and Other Financial Measures	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

February 19, 2020

Sun Communities, Inc. Reports 2019Fourth Quarter Results and 2020 Guidance

Southfield, Michigan, February 19, 2020– 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 fourth quarter results for 2019.

Financial Results for the Quarter and Year Ended December 31, 2019

For the quarter ended December 31, 2019, total revenues increased $27.8 million, or 10.2 percent, to $301.8 million compared to $274.0 million for the same period in 2018. Net income attributable to common stockholders was $28.5 million, or $0.31 per diluted common share, for the quarter ended December 31, 2019, as compared to net income attributable to common stockholders of $9.0 million, or $0.11 per diluted common share, for the same period in 2018.

For the year ended December 31, 2019, total revenues increased $137.2 million, or 12.2 percent, to $1.3 billion compared to $1.1 billion for the same period in 2018. Net income attributable to common stockholders was $160.3 million, or $1.80 per diluted common share, for the year ended December 31, 2019, as compared to net income attributable to common stockholders of $105.5 million, or $1.29 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 quarter ended December 31, 2019, was $1.10 per diluted share and OP unit (“Share”) as compared to $1.03 in the prior year, an increase of 6.8 percent. Core FFO⁽¹⁾ for the year ended December 31, 2019, was $4.92 per Share as compared to $4.58 in the prior year, an increase of 7.4 percent.

• Same Community⁽²⁾ Net Operating Income (“NOI”)⁽¹⁾increased by 7.6 percent and 7.3 percent for the quarter and year ended December 31, 2019, respectively, as compared to the corresponding periods in 2018.

• Same Community Occupancy ⁽³⁾increased by 220 basis points to 98.4 percent at December 31, 2019, as compared to 96.2 percent at December 31, 2018.

• Revenue Producing Sites increased by 669 sites for the quarter and 2,674 sites for the year ended December 31, 2019, respectively, bringing total portfolio occupancy to 96.4 percent.

Gary Shiffman, Chief Executive Officer of Sun Communities stated, “Sun Communities again delivered industry leading growth as we successfully executed on our strategic initiatives and saw strong results across the business. Our organic growth has been a consistent earnings driver as we benefit from sustained consumer demand for our high-quality, affordable homes and RV vacation destinations. Capital deployment during 2019 of over $1.2 billion in accretive acquisitions, expansions, and ground up development provide incremental growth opportunities for the years ahead. In recognition of an outstanding year and a solid future, the Board of Directors for the fourth consecutive year approved an increase in our quarterly dividend. We are proud of our accomplishments and our team and remain committed to delivering superior value to our shareholders.”

i

OPERATING HIGHLIGHTS

Portfolio Occupancy

Total portfolio occupancy was 96.4 percent at December 31, 2019, compared to 96.1 percent at December 31, 2018.

During the quarter ended December 31, 2019, revenue producing sites increased by 669 sites, as compared to 722 revenue producing sites gained during the fourth quarter of 2018.

During the year ended December 31, 2019, revenue producing sites increased by 2,674 sites, as compared to an increase of 2,600 revenue producing sites during the year ended December 31, 2018, a 2.8 percent increase.

Same Community⁽²⁾ Results

For the 345 communities owned and operated by the Company since January 1, 2018, NOI⁽¹⁾ for the quarter ended December 31, 2019increased7.6 percent over the same period in 2018, as a result of a 6.4 percent increase in revenues and a 3.6 percent increase in operating expenses. Same Community occupancy⁽³⁾increased to 98.4 percent at December 31, 2019 from 96.2 percent at December 31, 2018.

For the year ended December 31, 2019, NOI⁽¹⁾increased7.3 percent over 2018, as a result of a 6.2 percent increase in revenues and a 3.8 percent increase in operating expenses.

Home Sales

During the quarter ended December 31, 2019, the Company sold 808 homes as compared to 878 homes sold during the same period in 2018. New home sales volume was 140 for both the quarters ended December 31, 2019 and 2018. Rental home sales, which are included in total home sales, were 281 in 2019, as compared to 297 sold during 2018.

During the year ended December 31, 2019, 3,439 homes were sold compared to 3,629 for the same period in 2018. New home sales volume increased8.6 percent to 571 new home sales for the year ended December 31, 2019, as compared to 526 homes during the same period in 2018. Rental home sales, which are included in total home sales, were 1,140 in 2019, an increase of 1.6 percent over the 1,122 sold during 2018.

ii

PORTFOLIO ACTIVITY

Acquisitions

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

Community Name	Type	Sites	Expansion Sites	State	Total Purchase Price (in millions)	Month Acquired
Slickrock Campground	RV	193	—	UT	$8.3	December
Pandion Ridge	RV	142	351	AL	$19.1	November
Jensen Portfolio (1)	MH	5,230	466	Various	$343.6	October

⁽¹⁾ Contains 31 communities located in CT, GA, MD, NH, NJ, NY, NC and SC.

For the year endedDecember 31, 2019, the Company acquired 47 communities, totaling over 10,000 developed sites and over 900 sites available for expansion, for a total purchase price of approximately $815.2 million.

Subsequent to the year ended December 31, 2019, the Company acquired Cape Cod RV Resort located in East Falmouth, Massachusetts with 230 developed sites for a purchase price of $13.5 million. In conjunction with the acquisition, the Company’s operating partnership issued 90,000 Series E Preferred Units, at an issuance price of $100 per unit.

Construction Activity

During the quarter ended December 31, 2019, the Company completed the construction of 284 sites at the following ground-up developments:

Community Name	Type	State	Completed Construction Sites	Remaining Construction Sites (1)	Total Sites Once Completed (1)
Carolina Pines	RV	SC	109	351	846
Jellystone Golden Valley	RV	NC	69	133	315
River Run	RV	CO	106	823	1,150

⁽¹⁾ Remaining sites are approximate and may be adjusted as final construction is completed.

For the year ended December 31, 2019, the Company completed the construction of approximately 1,100 sites at four ground-up developments and one redevelopment community.

During the quarter ended December 31, 2019, the Company completed the construction of 864 expansion sites in nine communities. For the year ended December 31, 2019, the Company completed the construction of approximately 1,230 expansion sites in 16 communities.

iii

BALANCE SHEET AND CAPITAL MARKETS ACTIVITY

Series A-4 Preferred Stock and OP Units

On December 13, 2019, as previously announced and disclosed, all outstanding shares of the Company’s 6.50% Series A-4 Cumulative Convertible Preferred Stock, and all of its operating partnership’s Series A-4 Preferred OP Units, were converted into common stock and common OP units, respectively. All 1,031,747 shares of Series A-4 Preferred Stock were converted into 458,541 shares of common stock (net of fractional shares paid in cash). All 405,656 Series A-4 preferred OP units were converted into 180,277 common OP units (net of fractional units paid in cash).

Debt Transactions

During the quarter ended December 31, 2019, the Company completed a 21-year, $400.0 million term loan transaction that carries an interest rate of 4.0 percent.  Concurrently, the Company repaid a $17.0 million term loan due to mature in 2020 and $127.3 million in term loans due to mature in 2021.  The Company also repaid four term loans secured by three properties totaling $21.5 million which were set to mature in 2020.

As of December 31, 2019, the Company had $3.4 billion of debt outstanding. The weighted average interest rate was 4.0 percent and the weighted average maturity was 11.1 years. The Company had $22.1 million of unrestricted cash on hand. At period-end the Company’s net debt to trailing twelve month Recurring EBITDA⁽¹⁾ ratio was 5.5 times.

2020 Distributions

After quarter end, the Company announced a 5.3 percent annual distribution increase to $3.16 per common share from $3.00 per common share. This increase will begin with the first quarter distribution to be paid in April 2020. While the Company has adopted the new annual distribution policy, the amount of each quarterly distribution on the Company’s common stock will be subject to approval by its Board of Directors.

iv

GUIDANCE 2020

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

	Net Income	Core FFO(1)
Weighted average common shares outstanding, fully diluted (in mm)(i)	92.5	96.9
First quarter 2020, per fully diluted share	$0.34 - $0.37	$1.18 - $1.21
Full year 2020, per fully diluted share	$1.79 - $1.91	$5.20 - $5.30

	1Q20	2Q20	3Q20	4Q20
Seasonality of Core FFO(1)	22.9%	23.8%	30.8%	22.5%

Total Portfolio

Number of communities: 422

	2019 Actual		2020E
	(in Millions)		Change %
Income from real property (excluding transient revenue)	$	793.4	9.6% - 10.1%
Transient revenue	132.3		13.8% - 15.0%
Income from real property	$	925.7	10.2% - 10.8%
Property operating and maintenance	266.4		11.9% - 12.4%
Real estate taxes	61.9		11.6% - 12.1%
Total property operating expenses	$	328.3	11.9% - 12.3%
NOI(1)	$	597.4	9.1% - 10.2%

Same Community⁽²⁾ Portfolio⁽ⁱⁱ⁾ 

Number of communities: 367

	2019 Actual		2020E
	(in Millions)		Change %
Income from real property (excluding transient revenue)	$	740.7	6.3% - 6.5%
Transient revenue	116.9		2.4% - 3.0%
Income from real property(iii)	$	857.6	5.7% - 6.0%
Property operating and maintenance(iii)(iv)	217.0		3.6% - 4.6%
Real estate taxes	59.8		7.2% - 8.0%
Total property operating expenses	$	276.8	4.4% - 5.3%
NOI(1)	$	580.8	6.0% - 6.8%

Weighted average monthly rental rate increase				4.0%
	1Q20	2Q20	3Q20	4Q20
Same Community NOI(1) Seasonality	24.4%	24.1%	27.1%	24.4%

v

Total Company Supplementary Information:

	2019 Actual		2020E
	(in Millions)		Change %
Rental program, net	$	35.6	6.5% - 7.9%
Ancillary revenues, net	$	19.4	11.3% - 13.4%
Home sales contribution to Core FFO(v), net of home selling expenses	$	6.5	27.7% - 33.8%
Interest income	$	17.9	(51.4)% - (50.8)%
Brokerage commissions and other revenues, net, and income from nonconsolidated affiliates	$	15.5	7.1% - 9.0%
General and administrative expenses	$	94.0	11.7% - 14.1%
Loss of earnings from Florida Keys included in core FFO	$	1.4	(13.5)%

	2020E
Increase in revenue producing sites	2,500 - 2,700
Vacant expansion site deliveries	1,000 - 1,200
Vacant ground-up development site deliveries	550 - 750
New home sales volume	650 - 700
Pre-owned home sales volume	2,550 - 2,750

(i) Certain securities that are dilutive to the computation of Core FFO per fully diluted share in the table above have been excluded from the computation of net income per fully diluted share, as inclusion of these securities would have been anti-dilutive to net income per fully diluted share.

(ii) The amounts in the table reflect constant currency, as Canadian currency figures included within the 2019 actual amounts have been translated at the assumed exchange rate used for 2020 guidance.

(iii) Water and sewer utility revenue of $34.7 million and $36.2 million has been reclassified from Income from real property to net against the related expense in Property operating maintenance for 2019 and 2020 guidance, respectively.

(iv) For 2019, property operating and maintenance expense excludes $0.7 million of expenses incurred for recently acquired properties to bring the properties up to the Company’s operating standards that do not meet the Company’s capitalization policy.

(v) Includes gross profit from new and certain pre-owned home sales. Gross profit from pre-owned home sales of depreciated rental homes is excluded.

vi

EARNINGS CONFERENCE CALL

A conference call to discuss fourth quarter operating results will be held on Thursday, February 20, 2020at 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 March 5, 2020 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 13697139. 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 December 31, 2019, owned, operated, or had an interest in a portfolio of 422 communities comprising over 141,000 developed sites in 33 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.

vii

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

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

Portfolio Overview                            

(As of December 31, 2019)

4th Quarter 2019 Supplemental Information     2          Sun Communities, Inc.

Financial and Operating Highlights                                        

(amounts in thousands, except for *)

	Quarter Ended
	12/31/2019		9/30/2019		6/30/2019		3/31/2019		12/31/2018
Financial Information
Total revenues	$	301,819	$	362,443	$	312,445	$	287,330	$	274,003
Net income	$	30,685	$	64,451	$	45,116	$	37,127	$	10,672
Net Income attributable to Sun Communities Inc. common stockholders	$	28,547	$	57,002	$	40,385	$	34,331	$	9,039
Basic earnings per share*	$	0.31	$	0.63	$	0.46	$	0.40	$	0.11
Diluted earnings per share*	$	0.31	$	0.63	$	0.46	$	0.40	$	0.11
Cash distributions declared per common share*	$	0.75	$	0.75	$	0.75	$	0.75	$	0.71
Recurring EBITDA (1)	$	144,738	$	179,953	$	151,502	$	147,714	$	133,335
FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities (1) (7)	$	105,533	$	119,496	$	108,112	$	106,779	$	88,562
Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities (1) (7)	$	104,534	$	137,369	$	108,002	$	106,259	$	92,695
FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities (1) (7) per share - fully diluted*	$	1.11	$	1.27	$	1.18	$	1.19	$	0.98
Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities (1) (7) per share - fully diluted*	$	1.10	$	1.46	$	1.18	$	1.18	$	1.03
Balance Sheet
Total assets	$	7,802,060	$	7,397,854	$	7,222,084	$	7,098,662	$	6,710,026
Total debt	$	3,434,402	$	3,271,341	$	3,107,775	$	3,448,117	$	3,124,303
Total liabilities	$	3,848,104	$	3,720,983	$	3,542,188	$	3,846,325	$	3,479,112

	Quarter Ended
	12/31/2019		9/30/2019		6/30/2019		3/31/2019		12/31/2018
Operating Information*
Communities	422		389		382		379		371
Manufactured home sites	93,821		88,024		87,555		87,425		84,428
Annual RV sites	26,056		25,756		25,009		24,750		24,535
Transient RV sites	21,416		20,882		20,585		20,173		19,491
Total sites	141,293		134,662		133,149		132,348		128,454
MH occupancy	95.5	%	95.7	%	95.7	%	95.4	%	95.0	%
RV occupancy	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Total blended MH and RV occupancy	96.4	%	96.7	%	96.6	%	96.4	%	96.1	%
New home sales	140		167		139		125		140
Pre-owned home sales	668		739		788		673		738
Total home sales	808		906		927		798		878

	Three Months Ended	Year Ended
	December 31, 2019	December 31, 2019
Net Leased Sites (24)
MH net leased sites	437	1,541
RV net leased sites	232	1,133
Total net leased sites	669	2,674

4th Quarter 2019 Supplemental Information     3          Sun Communities, Inc.

Balance Sheets                                                

(amounts in thousands)

	December 31, 2019			December 31, 2018
Assets
Land	$	1,414,279		$	1,201,945
Land improvements and buildings	6,595,272			5,586,250
Rental homes and improvements	627,175			571,661
Furniture, fixtures and equipment	282,874			201,090
Investment property	8,919,600			7,560,946
Accumulated depreciation	(1,686,980		)	(1,442,630		)
Investment property, net	7,232,620			6,118,316
Cash, cash equivalents and restricted cash	34,830			62,262
Marketable securities	94,727			49,037
Inventory of manufactured homes	62,061			49,199
Notes and other receivables, net	157,926			160,077
Collateralized receivables, net (4)	—			106,924
Other assets, net	219,896			164,211
Total Assets	$	7,802,060		$	6,710,026
Liabilities
Mortgage loans payable	$	3,180,592		$	2,815,957
Secured borrowings on collateralized receivables (4)	—			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)	183,898			128,000
Distributions payable	71,704			63,249
Advanced reservation deposits and rent	133,420			133,698
Accrued expenses and accounts payable	127,289			106,281
Other liabilities	81,289			51,581
Total Liabilities	3,848,104			3,479,112
Commitments and contingencies
Series A-4 preferred stock	—			31,739
Series A-4 preferred OP units	—			9,877
Series D preferred OP units	50,913			—
Equity Interests - NG Sun LLC and NG Whitewater	27,091			21,976
Stockholders' Equity
Common stock	932			864
Additional paid-in capital	5,213,264			4,398,949
Accumulated other comprehensive loss	(1,331		)	(4,504		)
Distributions in excess of accumulated earnings	(1,393,141		)	(1,288,486		)
Total Sun Communities, Inc. stockholders' equity	3,819,724			3,106,823
Noncontrolling interests
Common and preferred OP units	47,686			53,354
Consolidated variable interest entities	8,542			7,145
Total noncontrolling interests	56,228			60,499
Total Stockholders' Equity	3,875,952			3,167,322
Total Liabilities, Temporary Equity and Stockholders' Equity	$	7,802,060		$	6,710,026

4th Quarter 2019 Supplemental Information     4          Sun Communities, Inc.

Statements of Operations - Quarter to Date and Year to Date Comparison

(amounts in thousands, except per share amounts)

	Three Months Ended											Year Ended
	December 31, 2019			December 31, 2018			Change			% Change		December 31, 2019			December 31, 2018			Change			% Change
Revenues
Income from real property (excluding transient revenue)	$	205,131		$	183,059		$	22,072		12.1	%	$	793,403		$	719,763		$	73,640		10.2	%
Transient revenue	21,232			17,426			3,806			21.8	%	132,261			106,210			26,051			24.5	%
Revenue from home sales	45,271			43,783			1,488			3.4	%	181,936			166,031			15,905			9.6	%
Rental home revenue	14,745			13,700			1,045			7.6	%	57,572			53,657			3,915			7.3	%
Ancillary revenue	9,135			7,900			1,235			15.6	%	66,881			54,107			12,774			23.6	%
Interest income	3,368			5,003			(1,635		)	(32.7	)%	17,857			20,852			(2,995		)	(14.4	)%
Brokerage commissions and other revenues, net	2,937			3,132			(195		)	(6.2	)%	14,127			6,205			7,922			127.7	%
Total Revenues	301,819			274,003			27,816			10.2	%	1,264,037			1,126,825			137,212			12.2	%
Expenses
Property operating and maintenance	63,486			54,120			9,366			17.3	%	266,378			236,097			30,281			12.8	%
Real estate taxes	15,425			14,110			1,315			9.3	%	61,880			56,555			5,325			9.4	%
Cost of home sales	34,327			32,138			2,189			6.8	%	134,357			123,333			11,024			8.9	%
Rental home operating and maintenance	5,542			6,414			(872		)	(13.6	)%	21,995			23,304			(1,309		)	(5.6	)%
Ancillary expenses	9,144			9,058			86			0.9	%	47,432			38,043			9,389			24.7	%
Home selling expenses	3,752			4,403			(651		)	(14.8	)%	14,690			15,722			(1,032		)	(6.6	)%
General and administrative expenses	25,405			20,457			4,948			24.2	%	93,964			81,429			12,535			15.4	%
Catastrophic weather related charges, net	435			2,079			(1,644		)	(79.1	)%	1,737			92			1,645			1,788.0	%
Depreciation and amortization	98,826			81,070			17,756			21.9	%	328,067			287,262			40,805			14.2	%
(Gain) / loss on extinguishment of debt	3,027			(65		)	3,092			(4,756.9	)%	16,505			1,190			15,315			1,287.0	%
Interest expense	33,259			32,235			1,024			3.2	%	133,153			130,556			2,597			2.0	%
Interest on mandatorily redeemable preferred OP units / equity	1,207			1,143			64			5.6	%	4,698			3,694			1,004			27.2	%
Total Expenses	293,835			257,162			36,673			14.3	%	1,124,856			997,277			127,579			12.8	%
Income Before Other Items	7,984			16,841			(8,857		)	(52.6	)%	139,181			129,548			9,633			7.4	%
Gain / (loss) on remeasurement of marketable securities	17,692			(3,639		)	21,331			(586.2	)%	34,240			(3,639		)	37,879			(1,040.9	)%
Other income / (expense), net (6)	4,946			(3,239		)	8,185			(252.7	)%	3,457			(6,453		)	9,910			(153.6	)%
Income / (loss) from nonconsolidated affiliates	(6		)	619			(625		)	(101.0	)%	1,374			790			584			73.9	%
Current tax benefit / (expense)	(189		)	17			(206		)	(1,211.8	)%	(1,095		)	(595		)	(500		)	84.0	%
Deferred tax benefit	258			73			185			253.4	%	222			507			(285		)	(56.2	)%
Net Income	30,685			10,672			20,013			187.5	%	177,379			120,158			57,221			47.6	%
Less: Preferred return to preferred OP units / equity	(1,418		)	(1,151		)	267			23.2	%	(6,058		)	(4,486		)	1,572			35.0	%
Less: Amounts attributable to noncontrolling interests	(720		)	(51		)	669			1,311.8	%	(9,768		)	(8,443		)	1,325			15.7	%
Net Income attributable to Sun Communities, Inc.	28,547			9,470			19,077			201.4	%	161,553			107,229			54,324			50.7	%
Less: Preferred stock distribution	—			(431		)	(431		)	(100.0	)%	(1,288		)	(1,736		)	(448		)	(25.8	)%
Net Income attributable to Sun Communities, Inc. common stockholders	$	28,547		$	9,039		$	19,508		215.8	%	$	160,265		$	105,493		$	54,772		51.9	%
Weighted average common shares outstanding - basic	91,342			85,481			5,861			6.9	%	88,460			81,387			7,073			8.7	%
Weighted average common shares outstanding - diluted	91,893			85,982			5,911			6.9	%	88,915			82,040			6,875			8.4	%
Basic earnings per share	$	0.31		$	0.11		$	0.20		181.8	%	$	1.80		$	1.29		$	0.51		39.5	%
Diluted earnings per share	$	0.31		$	0.11		$	0.20		181.8	%	$	1.80		$	1.29		$	0.51		39.5	%

4th Quarter 2019 Supplemental Information     5          Sun Communities, Inc.

Outstanding Securities and Capitalization    

(amounts in thousands except for *)

Outstanding Securities - As of December 31, 2019
	Number of Units/Shares Outstanding	Conversion Rate*	If Converted	Issuance Price per unit*	Annual Distribution Rate*
Non-convertible securities
Common shares	93,180	N/A	N/A	N/A	$3.00^
Convertible securities
Series A-1 preferred OP units	309	2.4390	754	$100	6.0%
Series C preferred OP units	310	1.1100	345	$100	4.5%
Series D preferred OP units	489	0.8000	392	$100	3.8%
Series A-3 preferred OP units	40	1.8605	75	$100	4.5%
Common OP units	2,420	1.0000	2,420	N/A	Mirrors common shares distributions
^ Annual distribution is based on the last quarterly distribution annualized.

Capitalization - As of December 31, 2019
Equity	Shares	Share Price*		Total
Common shares	93,180	$	150.10	$	13,986,318
Common OP units	2,420	$	150.10	363,242
Subtotal	95,600			$	14,349,560
Series A-1 preferred OP units	754	$	150.10	$	113,175
Series C preferred OP units	345	$	150.10	51,785
Series D preferred OP units	392	$	150.10	58,839
Series A-3 preferred OP units	75	$	150.10	11,258
Total diluted shares outstanding	97,166			$	14,584,617
Debt
Mortgage loans payable				$	3,180,592
Preferred Equity - Sun NG Resorts - mandatorily redeemable				35,249
Preferred OP units - mandatorily redeemable				34,663
Lines of credit (5)				183,898
Total debt				$	3,434,402
Total Capitalization				$	18,019,019

4th Quarter 2019 Supplemental Information     6          Sun Communities, Inc.

Reconciliations to Non-GAAP Financial Measures

4th Quarter 2019 Supplemental Information     7          Sun Communities, Inc.

Reconciliation of Net Income Attributable to Sun Communities, Inc. Common Stockholders to FFO⁽¹⁾

(amounts in thousands except for per share data)

	Three Months Ended						Year Ended
	December 31, 2019			December 31, 2018			December 31, 2019			December 31, 2018
Net income attributable to Sun Communities, Inc. common stockholders	$	28,547		$	9,039		$	160,265		$	105,493
Adjustments
Depreciation and amortization	98,950			81,314			328,646			288,206
(Gain) / loss on remeasurement of marketable securities	(17,692		)	3,639			(34,240		)	3,639
Amounts attributable to noncontrolling interests	482			15			8,474			7,740
Preferred return to preferred OP units	519			552			2,610			2,206
Preferred distribution to Series A-4 preferred stock	—			432			1,288			1,737
Gain on disposition of assets, net	(5,273		)	(6,429		)	(26,356		)	(23,406		)
FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities (1) (7)	$	105,533		$	88,562		$	440,687		$	385,615
Adjustments
Other acquisition related costs (8)	244			220			1,146			1,001
(Gain) / loss on extinguishment of debt	3,027			(65		)	16,505			1,190
Catastrophic weather related charges, net	398			2,079			1,737			92
Loss of earnings - catastrophic weather related (9)	—			(1,267		)	—			(292		)
Other (income) / expense (6)	(4,946		)	3,239			(3,457		)	6,453
Other adjustments (a)	278			(73		)	314			310
Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities (1) (7)	$	104,534		$	92,695		$	456,932		$	394,369
Weighted average common shares outstanding - basic	91,342			85,481			88,460			81,387
Add
Common stock issuable upon conversion of stock options	1			2			1			2
Restricted stock	550			499			454			651
Common stock issuable upon conversion of Series A-4 preferred stock	292			472			423			472
Common stock issuable upon conversion of Series A-4 preferred OP units	143			—			172			—
Common OP units	2,300			2,727			2,448			2,733
Common stock issuable upon conversion of Series A-3 preferred OP units	75			75			75			75
Common stock issuable upon conversion of Series A-1 preferred OP units	760			810			784			821
Weighted average common shares outstanding - fully diluted	95,463			90,066			92,817			86,141
FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities (1) (7) per share - fully diluted	$	1.11		$	0.98		$	4.75		$	4.48
Core FFO attributable to Sun Communities, Inc. common stockholders and dilutive convertible securities (1) (7) per share - fully diluted	$	1.10		$	1.03		$	4.92		$	4.58

^{(a) Other adjustments include early retirement compensation expense, ground lease intangible write-off, and deferred tax benefits.} 

4th Quarter 2019 Supplemental Information     8          Sun Communities, Inc.

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

(amounts in thousands)

	Three Months Ended						Year Ended
	December 31, 2019			December 31, 2018			December 31, 2019			December 31, 2018
Net Income attributable to Sun Communities, Inc. common stockholders	$	28,547		$	9,039		$	160,265		$	105,493
Adjustments
Depreciation and amortization	98,826			81,070			328,067			287,262
(Gain) / loss on extinguishment of debt	3,027			(65		)	16,505			1,190
Interest expense	34,466			33,378			137,851			134,250
Current tax (benefit) / expense	189			(17		)	1,095			595
Deferred tax benefit	(258		)	(73		)	(222		)	(507		)
(Income) / loss from nonconsolidated affiliates	6			(619		)	(1,374		)	(790		)
Less: Gain on dispositions of assets, net	(5,273		)	(6,429		)	(26,356		)	(23,406		)
EBITDAre (1)	$	159,530		$	116,284		$	615,831		$	504,087
Adjustments
Catastrophic weather related charges, net	435			2,079			1,737			92
(Gain) / loss on remeasurement of marketable securities	(17,692		)	3,639			(34,240		)	3,639
Other (income) / expense, net (6)	(4,946		)	3,239			(3,457		)	6,453
Preferred return to preferred OP units / equity	1,418			1,151			6,058			4,486
Amounts attributable to noncontrolling interests	720			51			9,768			8,443
Preferred stock distribution	—			431			1,288			1,736
Plus: Gain on dispositions of assets, net	5,273			6,429			26,356			23,406
Recurring EBITDA (1)	$	144,738		$	133,303		$	623,341		$	552,342

4th Quarter 2019 Supplemental Information     9          Sun Communities, Inc.

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

(amounts in thousands)

	Three Months Ended						Year Ended
	December 31, 2019			December 31, 2018			December 31, 2019			December 31, 2018
Net Income attributable to Sun Communities, Inc. common stockholders	$	28,547		$	9,039		$	160,265		$	105,493
Other revenues	(6,305		)	(8,135		)	(31,984		)	(27,057		)
Home selling expenses	3,752			4,403			14,690			15,722
General and administrative expenses	25,405			20,457			93,964			81,429
Catastrophic weather related charges, net	435			2,079			1,737			92
Depreciation and amortization	98,826			81,070			328,067			287,262
Gain / (loss) on extinguishment of debt	3,027			(65		)	16,505			1,190
Interest expense	34,466			33,378			137,851			134,250
(Gain) / loss on remeasurement of marketable securities	(17,692		)	3,639			(34,240		)	3,639
Other (income) / expense, net (6)	(4,946		)	3,239			(3,457		)	6,453
(Income) / loss from nonconsolidated affiliates	6			(619		)	(1,374		)	(790		)
Current tax (benefit) / expense	189			(17		)	1,095			595
Deferred tax benefit	(258		)	(73		)	(222		)	(507		)
Preferred return to preferred OP units / equity	1,418			1,151			6,058			4,486
Amounts attributable to noncontrolling interests	720			51			9,768			8,443
Preferred stock distribution	—			431			1,288			1,736
NOI (1) / Gross Profit	$	167,590		$	150,028		$	700,011		$	622,436

	Three Months Ended						Year Ended
	December 31, 2019			December 31, 2018			December 31, 2019			December 31, 2018
Real Property NOI (1)	$	147,452		$	132,255		$	597,406		$	533,321
Home Sales NOI (1) / Gross Profit	10,944			11,645			47,579			42,698
Rental Program NOI (1)	26,682			23,656			104,382			95,968
Ancillary NOI (1) / Gross Profit	(9		)	(1,158		)	19,449			16,064
Site rent from Rental Program (included in Real Property NOI) (1) (10)	(17,479		)	(16,370		)	(68,805		)	(65,615		)
NOI (1) / Gross Profit	$	167,590		$	150,028		$	700,011		$	622,436

4th Quarter 2019 Supplemental Information     10          Sun Communities, Inc.

Non-GAAP and Other Financial Measures

4th Quarter 2019 Supplemental Information     11          Sun Communities, Inc.

Debt Analysis    

(amounts in thousands)

	Quarter Ended
	12/31/2019			9/30/2019			6/30/2019			3/31/2019			12/31/2018
Debt Outstanding
Mortgage loans payable	$	3,180,592		$	2,967,128		$	2,863,485		$	2,879,017		$	2,815,957
Secured borrowings on collateralized receivables (4)	—			93,669			98,299			102,676			107,731
Preferred Equity - Sun NG Resorts - mandatorily redeemable	35,249			35,249			35,249			35,249			35,277
Preferred OP units - mandatorily redeemable	34,663			34,663			34,663			34,663			37,338
Lines of credit (5)	183,898			140,632			76,079			396,512			128,000
Total debt	$	3,434,402		$	3,271,341		$	3,107,775		$	3,448,117		$	3,124,303
% Fixed / Floating
Fixed	94.7		%	95.7		%	97.6		%	88.5		%	95.9		%
Floating	5.3		%	4.3		%	2.4		%	11.5		%	4.1		%
Total	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%
Weighted Average Interest Rates
Mortgage loans payable	4.05		%	4.13		%	4.24		%	4.24		%	4.22		%
Preferred Equity - Sun NG Resorts - mandatorily redeemable	6.00		%	6.00		%	6.00		%	6.00		%	6.00		%
Preferred OP units - mandatorily redeemable	6.50		%	6.50		%	6.50		%	6.50		%	6.61		%
Lines of credit (5)	2.71		%	3.23		%	3.34		%	3.73		%	3.77		%
Average before secured borrowings (4)	4.03		%	4.14		%	4.27		%	4.22		%	4.25		%
Secured borrowings on collateralized receivables (4)	—		%	9.92		%	9.93		%	9.94		%	9.94		%
Total average	4.03		%	4.30		%	4.44		%	4.39		%	4.45		%
Debt Ratios
Net Debt / Recurring EBITDA (1) (TTM)	5.5			5.3			5.2			6.0			5.6
Net Debt / Enterprise Value	19.0		%	18.7		%	20.2		%	24.1		%	25.2		%
Net Debt / Gross Assets	36.0		%	36.0		%	35.1		%	39.8		%	37.7		%
Coverage Ratios
Recurring EBITDA (1) (TTM) / Interest	4.4			4.4			4.2			4.1			4.0
Recurring EBITDA (1) (TTM) / Interest + Pref. Distributions + Pref. Stock Distribution	4.2			4.2			4.0			3.9			3.9

Maturities / Principal Amortization Next Five Years	2020			2021			2022			2023			2024
Mortgage loans payable
Maturities	$	19,796		$	148,378		$	82,155		$	185,618		$	315,331
Principal amortization	60,723			60,873			61,326			60,604			57,082
Preferred Equity - Sun NG Resorts - mandatorily redeemable	—			—			35,249			—			—
Preferred OP units - mandatorily redeemable	—			—			—			—			34,663
Lines of credit (5)	10,000			13,293			10,000			150,605			—
Total	$	90,519		$	222,544		$	188,730		$	396,827		$	407,076
Weighted average rate of maturities	5.83		%	5.88		%	4.46		%	4.08		%	4.47		%

4th Quarter 2019 Supplemental Information     12          Sun Communities, Inc.

Real Property Operations – Same Community⁽²⁾

(amounts in thousands except for Other Information)

	Three Months Ended									Year Ended
	December 31, 2019		December 31, 2018		Change			% Change		December 31, 2019		December 31, 2018		Change			% Change
Financial Information
Income from real property (11)	$	196,141	$	184,362	$	11,779		6.4	%	$	805,982	$	758,853	$	47,129		6.2	%
Property operating expenses
Payroll and benefits	17,007		16,243		764			4.7	%	72,519		68,630		3,889			5.7	%
Legal, taxes, and insurance	2,668		2,094		574			27.4	%	9,579		9,212		367			4.0	%
Utilities (11)	12,984		12,563		421			3.4	%	58,044		57,309		735			1.3	%
Supplies and repair (12)	6,342		5,685		657			11.6	%	30,025		27,158		2,867			10.6	%
Other	4,430		4,432		(2		)	—	%	19,966		20,535		(569		)	(2.8	)%
Real estate taxes	13,460		13,895		(435		)	(3.1	)%	57,553		55,667		1,886			3.4	%
Property operating expenses	56,891		54,912		1,979			3.6	%	247,686		238,511		9,175			3.8	%
Real Property NOI (1)	$	139,250	$	129,450	$	9,800		7.6	%	$	558,296	$	520,342	$	37,954		7.3	%

	As of
	December 31, 2019			December 31, 2018			Change			% Change
Other Information
Number of properties	345			345			-
MH occupancy (3)	97.9		%
RV occupancy (3)	100.0		%
MH & RV blended occupancy (3)	98.4		%	96.2		%	2.2		%
Monthly base rent per site - MH	$	577		$	554		$	23		4.2	%	(14)
Monthly base rent per site - RV (13)	$	489		$	461		$	28		6.1	%	(14)
Monthly base rent per site - Total (13)	$	557		$	533		$	24		4.5	%	(14)

4th Quarter 2019 Supplemental Information     13          Sun Communities, Inc.

Home Sales Summary     

(amounts in thousands except for *)

	Three Months Ended											Year Ended
	December 31, 2019			December 31, 2018			Change			% Change		December 31, 2019			December 31, 2018			Change			% Change
Financial Information
New homes
New home sales	$	19,900		$	16,600		$	3,300		19.9	%	$	71,760		$	59,578		$	12,182		20.4	%
New home cost of sales	16,817			14,726			2,091			14.2	%	61,557			51,913			9,644			18.6	%
NOI / Gross Profit (1) – new homes	3,083			1,874			1,209			64.5	%	10,203			7,665			2,538			33.1	%
Gross margin % – new homes	15.5		%	11.3		%	4.2		%			14.2		%	12.9		%	1.3		%
Average selling price – new homes*	$	142,143		$	118,571		$	23,572		19.9	%	$	125,674		$	113,266		$	12,408		11.0	%
Pre-owned homes
Pre-owned home sales	$	25,371		$	27,183		$	(1,812	)	(6.7	)%	$	110,176		$	106,453		$	3,723		3.5	%
Pre-owned home cost of sales	17,510			17,412			98			0.6	%	72,800			71,420			1,380			1.9	%
NOI / Gross Profit (1) – pre-owned homes	7,861			9,771			(1,910		)	(19.5	)%	37,376			35,033			2,343			6.7	%
Gross margin % – pre-owned homes	31.0		%	35.9		%	(4.9		)%			33.9		%	32.9		%	1.0		%
Average selling price – pre-owned homes*	$	37,981		$	36,833		$	1,148		3.1	%	$	38,416		$	34,306		$	4,110		12.0	%
Total home sales
Revenue from home sales	45,271			43,783			1,488			3.4	%	181,936			166,031			15,905			9.6	%
Cost of home sales	34,327			32,138			2,189			6.8	%	134,357			123,333			11,024			8.9	%
NOI / Gross Profit (1) – home sales	$	10,944		$	11,645		$	(701	)	(6.0	)%	$	47,579		$	42,698		$	4,881		11.4	%
Statistical Information
New home sales volume*	140			140			—			—	%	571			526			45			8.6	%
Pre-owned home sales volume*	668			738			(70		)	(9.5	)%	2,868			3,103			(235		)	(7.6	)%
Total home sales volume *	808			878			(70		)	(8.0	)%	3,439			3,629			(190		)	(5.2	)%

4th Quarter 2019 Supplemental Information     14          Sun Communities, Inc.

Rental Program Summary     

(amounts in thousands except for *)

	Three Months Ended									Year Ended
	December 31, 2019		December 31, 2018		Change			% Change		December 31, 2019		December 31, 2018		Change			% Change
Financial Information
Revenues
Rental home revenue	$	14,745	$	13,700	$	1,045		7.6	%	$	57,572	$	53,657	$	3,915		7.3	%
Site rent from Rental Program (1) (10)	17,479		16,370		1,109			6.8	%	68,805		65,615		3,190			4.9	%
Rental Program revenue	32,224		30,070		2,154			7.2	%	126,377		119,272		7,105			6.0	%
Expenses
Repairs and refurbishment	3,273		3,005		268			8.9	%	12,591		10,456		2,135			20.4	%
Taxes and insurance	1,857		1,717		140			8.2	%	7,488		6,425		1,063			16.5	%
Other	412		1,692		(1,280		)	(75.7	)%	1,916		6,423		(4,507		)	(70.2	)%
Rental Program operating and maintenance	5,542		6,414		(872		)	(13.6	)%	21,995		23,304		(1,309		)	(5.6	)%
Rental Program NOI (1)	$	26,682	$	23,656	$	3,026		12.8	%	$	104,382	$	95,968	$	8,414		8.8	%
Other Information
Number of sold rental homes*	281		297		(16		)	(5.4	)%	1,140		1,122		18			1.6	%
Number of occupied rentals, end of period*										11,325		10,994		331			3.0	%
Investment in occupied rental homes, end of period										$	584,771	$	530,006	$	54,765		10.3	%
Weighted average monthly rental rate, end of period*										$	997	$	949	$	48		5.1	%

4th Quarter 2019 Supplemental Information     15          Sun Communities, Inc.

Acquisitions and Other Summary ⁽¹⁵⁾  

(amounts in thousands except for statistical data)

	Three Months Ended		Year Ended
	December 31, 2019		December 31, 2019
Financial Information
Revenues
Income from real property	$	21,475	$	85,023
Property and operating expenses
Payroll and benefits	4,685		15,566
Legal, taxes & insurance	394		1,199
Utilities	2,717		9,207
Supplies and repairs	1,272		4,638
Other	2,240		10,976
Real estate taxes	1,965		4,327
Property operating expenses	13,273		45,913
Net operating income (NOI) (1)	$	8,202	$	39,110
			December 31, 2019
Other Information
Number of properties			77
Occupied sites			9,307
Developed sites			9,950
Occupancy %			93.5		%
Transient sites			7,104

4th Quarter 2019 Supplemental Information     16          Sun Communities, Inc.

Property Summary
(includes MH and Annual RVs)
COMMUNITIES	12/31/2019		9/30/2019		6/30/2019		3/31/2019		12/31/2018
FLORIDA
Communities	125		125		125		125		124
Developed sites (16)	39,230		39,067		38,879		38,878		37,874
Occupied (16)	38,346		38,155		37,944		37,932		36,868
Occupancy % (16)	97.7	%	97.7	%	97.6	%	97.6	%	97.3	%
Sites for development	1,527		1,633		1,638		1,685		1,684
MICHIGAN
Communities	72		72		72		72		70
Developed sites (16)	27,905		27,906		27,891		27,777		26,504
Occupied (16)	26,785		26,677		26,591		26,430		25,075
Occupancy % (16)	96.0	%	95.6	%	95.3	%	95.2	%	94.6	%
Sites for development	1,115		1,115		1,115		1,202		1,202
TEXAS
Communities	23		23		23		23		23
Developed sites (16)	7,615		7,098		6,997		6,953		6,922
Occupied (16)	7,006		6,834		6,683		6,529		6,428
Occupancy % (16)	92.0	%	96.3	%	95.5	%	93.9	%	92.9	%
Sites for development	555		1,086		1,100		1,107		1,121
CALIFORNIA
Communities	31		31		31		31		30
Developed sites (16)	5,981		5,963		5,946		5,949		5,941
Occupied (16)	5,941		5,917		5,896		5,902		5,897
Occupancy % (16)	99.3	%	99.2	%	99.2	%	99.2	%	99.3	%
Sites for development	302		302		56		56		56
ARIZONA
Communities	13		13		13		13		12
Developed sites (16)	4,263		4,239		4,235		4,238		3,836
Occupied (16)	3,892		3,852		3,842		3,830		3,545
Occupancy % (16)	91.3	%	90.9	%	90.7	%	90.4	%	92.4	%
Sites for development	—		—		—		—		—
ONTARIO, CANADA
Communities	15		15		15		15		15
Developed sites (16)	4,031		4,022		3,929		3,832		3,845
Occupied (16)	4,031		4,022		3,929		3,832		3,845
Occupancy % (16)	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Sites for development	1,611		1,675		1,675		1,675		1,682
INDIANA
Communities	11		11		11		11		11
Developed sites (16)	3,087		3,089		3,089		3,089		3,089
Occupied (16)	2,900		2,870		2,849		2,823		2,772
Occupancy % (16)	93.9	%	92.9	%	92.2	%	91.4	%	89.7	%
Sites for development	277		277		277		277		277
OHIO
Communities	9		9		9		9		9
Developed sites (16)	2,770		2,770		2,770		2,770		2,770
Occupied (16)	2,716		2,703		2,705		2,704		2,693
Occupancy % (16)	98.1	%	97.6	%	97.7	%	97.6	%	97.2	%
Sites for development	59		59		59		59		59

4th Quarter 2019 Supplemental Information     17          Sun Communities, Inc.

Property Summary
(includes MH and Annual RVs)
COMMUNITIES	12/31/2019			9/30/2019		6/30/2019		3/31/2019		12/31/2018
COLORADO
Communities	10			10		8		8		8
Developed sites (16)	2,423			2,423		2,335		2,335		2,335
Occupied (16)	2,322			2,325		2,323		2,323		2,320
Occupancy % (16)	95.8	%		96.0	%	99.5	%	99.5	%	99.4	%
Sites for development	1,867			1,973		2,129		2,129		2,129
OTHER STATES
Communities	113			80		75		72		69
Developed sites (16)	22,572			17,203		16,493		16,354		15,847
Occupied (16)	21,678			16,657		16,026		15,826		15,323
Occupancy % (16)	96.0	%		96.8	%	97.2	%	96.8	%	96.7	%
Sites for development	2,980			2,437		2,705		2,987		3,048
TOTAL - PORTFOLIO
Communities	422			389		382		379		371
Developed sites (16)	119,877			113,780		112,564		112,175		108,963
Occupied (16)	115,617			110,012		108,788		108,131		104,766
Occupancy % (16)	96.4	%	(17)	96.7	%	96.6	%	96.4	%	96.1	%
Sites for development (18)	10,293			10,557		10,754		11,177		11,258
% Communities age restricted	34.1	%		30.8	%	31.4	%	31.7	%	32.1	%
TRANSIENT RV PORTFOLIO SUMMARY
Location
Florida	5,465			5,506		5,693		5,650		5,917
California	1,952			1,970		1,985		1,975		1,765
Texas	1,623			1,642		1,693		1,717		1,752
Maryland	1,488			1,426		1,380		1,375		1,381
Arizona	1,397			1,421		1,424		1,421		1,423
Ontario, Canada	939			937		1,043		1,131		1,046
New York	923			924		935		929		925
New Jersey	864			868		875		906		884
Maine	811			821		848		857		572
Utah	753			560		562		562		562
Michigan	570			569		584		611		576
Indiana	534			519		519		519		519
Other states	4,097			3,719		3,044		2,520		2,169
Total transient RV sites	21,416			20,882		20,585		20,173		19,491

4th 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)
2019	$	345	$	30,382	$	31,135	$	930,668	$	281,808	$	9,638
2018	$	263	$	24,265	$	22,867	$	414,840	$	152,672	$	3,864
2017	$	214	$	14,166	$	18,049	$	204,375	$	88,331	$	1,990

4th 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	1,664	762	263	318	1,302
Michigan	509	473	60	1,400	167
Ontario, Canada	481	186	31	24	250
Texas	327	578	49	342	62
Arizona	84	83	40	16	165
Indiana	65	128	7	231	23
Ohio	89	23	—	142	10
California	80	44	29	7	75
Colorado	3	2	9	69	45
Other states	837	395	83	319	132
Year Ended December 31, 2019	4,139	2,674	571	2,868	2,231

TOTAL FOR YEAR ENDED	Resident Move-outs	Net 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	2.6	%	6.6	%
2018	2.4	%	7.2	%
2017	1.9	%	6.6	%

4th 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 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”).

4th Quarter 2019 Supplemental Information     21          Sun Communities, Inc.

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 108,024 developed sites, of which 106,310 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 95.8 percent for MH, 100.0 percent for RV, and 96.7 percent for the blended MH and RV. The MH and RV blended occupancy is derived from 109,927 developed sites, of which 106,310 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. In November 2019, the Company derecognized the transferred financial assets and secured borrowing as legal isolation criteria to be accounted for as a true sale were satisfied pursuant to the terms of the purchase agreement.

(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						Year Ended
	December 31, 2019			December 31, 2018			December 31, 2019			December 31, 2018
Foreign currency translation gain / (loss)	$	4,506		$	(5,795	)	$	4,479		$	(8,435	)
Collateralized receivables derecognition gain	587			—			587			—
Contingent liability remeasurement gain / (loss)	(82		)	2,621			(1,502		)	2,336
Long term lease termination expense	(65		)	(65		)	(107		)	(354		)
Other income / (expense), net	$	4,946		$	(3,239	)	$	3,457		$	(6,453	)

(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) Core FFO⁽¹⁾ includes an adjustment of $(1.3) million and $(0.3) million for the quarter and year endedDecember 31, 2018, for estimated loss of earnings in excess of the applicable business interruption deductible in relation to the Company’s Florida Keys communities that required redevelopment due to damages sustained from Hurricane Irma in September 2017. Amounts recognized in 2018 were received in 2019.

(10) The renter’s monthly payment includes the site rent and an amount attributable to the home lease. The site rent is reflected in Real Property Operations’ segment revenue. For purposes of management analysis, site rent is included in Rental Program revenue to evaluate the incremental revenue gains associated with 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 $8.7 million and $8.2 million of certain utility revenue against the related utility expense in property operating expense for the quarter ended December 31, 2019 and 2018, respectively. Same Community results net $34.7 million and $32.7 million of certain utility revenue against the related utility expense in property operating expense for the year ended December 31, 2019 and 2018, respectively. Additionally, the Company adopted ASC 842, the new lease accounting standard, as of January 1, 2019, which required the reclassification of bad debt expense 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 $26.1 thousand and $0.7 million for the three months and year ended December 31, 2018, respectively, of expenses incurred for recently acquired properties to bring the properties up to the Company’s operating standards, including items such as tree trimming and painting costs that do not meet the Company’s capitalization policy.

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

4th Quarter 2019 Supplemental Information     22          Sun Communities, Inc.

(14) Calculated using actual results without rounding.

(15) Acquisitions and other is comprised of forty-four properties acquired, one property being operated under a temporary use permit, and three properties that we have an interest in, but do not operate 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, five recently opened ground-up development properties, one property undergoing redevelopment, and other miscellaneous transactions and activity.

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

(17) As of December 31, 2019, total portfolio MH occupancy was 95.5 percent inclusive of the impact of approximately 2,200 recently constructed but vacant MH expansion sites, and annual RV occupancy was 100.0 percent.

(18) Total sites for development were comprised of approximately 76.3 percent for expansion, 17.6 percent for greenfield development and 6.1 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 year ended December 31, 2019 include $50.7 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.

4th Quarter 2019 Supplemental Information     23          Sun Communities, Inc.