Sun Communities, Inc.

Greetings. Thank you for joining us today for Sun Community's third quarter 2021 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will begin after the formal presentation. Please note that this conference is being recorded. I would now like to turn the conference over to your host, Gary Shiffman, Chairman and Chief Executive Officer.

Good morning, and thank you for joining us as we discuss our third quarter 2021 results. That strong third quarter is a continuation of the momentum we have historically demonstrated, which reflects both the stability and the growth potential of a platform we have established. This includes organic growth, expansions and developments, and acquisitions. The combination of these elements allowed us to deliver 31.9% growth in core FFO per share during the third quarter and exceeded the high end of our guidance. This beat, along with a positive outlook for the remainder of the year, once again led us to raise our core 2021 FFO guidance at $0.16 at the midpoint, a range of $6.44 to $6.50 per share, and we expected the same community NOI growth for the full year at 70 basis points, a range of 10.9% to 11.1%. For the quarter, same community NOI grew 12.4% over last year, driven by our favorable strategic positioning to capture the sustained demands in RVs. In our RV segment, same community NOI increased by 30.6% for the quarter, as transient RV continued to deliver exceptionally strong results. Our RV resort business is benefiting from people seeking outdoor experiences at Sun RV resorts, coming from both existing and new customers. RVing is establishing itself as the vacation choice for many travelers, and we have positioned the Sun to capture this demand at scale. We are continuing to see momentum in forward bookings for transient, as well as annual site conversions furthermore the opening of the canadian border in november is expected to accelerate that momentum in the first quarter of next year as we welcome back our canadian snowbird residents and guests the stability of our manufactured housing portfolio continues to show the need for attainable housing as evidenced by our home sales volume and applications to live in a Sun community. Manufactured home sales were another bright spot in the quarter, with total home sales volume up nearly 64% from the prior year and brokered home sales up over 15% for the quarter compared to the third quarter of 2020. Our core pillars of delivering superior customer service, maintaining high-quality communities, and offering an attainable housing option continue to create strong demand to live in a Sun community. In our marina segment, we're pleased that results continue to track ahead of our underwriting. Our NOI increases this quarter have been primarily from the continued demand for wet slips and dry storage needs for our members. Forward demand for dry storage and wet slip rental is ahead of where they were at this time last year, in large part through our best-in-class marina network, locations, and services. We have also remained active in growing and improving our portfolio. In the third quarter and through the date of this earnings call, we added 22 properties across our three segments, deploying over $500 million of capital and adding over 7,400 sites. Our recently acquired four-leaf portfolio of nine manufactured housing communities in the Midwest comprises over 2,500 high-quality sites with expansion growth opportunities and ample room to fill existing vacancies. On the marina side, our acquisitions of Puerto Del Rey and Puerto Rico, the largest marina in the Caribbean, continues to strengthen our irreplaceable network of marina assets. Puerto Del Rey now allows for a safe harbor member to remain within the network while traveling from the northeast all the way down to the Caribbean. Our acquisition teams remain extremely active, and we are enthusiastic about the opportunities we are seeing across each of Sun's business segments. Furthermore, we have a proven track record of maximizing value from our acquisitions as we integrate them onto the Sun platform. This includes adding value for our operational platform, proprietary technologies, the scale of our marketing and booking platforms, including Camp Spot, and potential repositioning of acquired properties. As the leading industry consolidator, we believe our cycle-tested ability to create value through acquisitions will continue to result in attractive accretive growth. This activity is supported by the ongoing proactive focus on maintaining financial flexibility. Additionally, we are continually evaluating our portfolio for assets which no longer fit with our long-term strategic and growth objectives. To that end, in the third quarter, we completed the disposition of six assets for a total sales price of $162 million, representing a blended cap rate in the low fours which further demonstrates the value of Sun's portfolio. We have a deep bench of incredibly talented team members, a well-positioned balance sheet, and a healthy pipeline of internal and external growth opportunities. And we remain optimistic in our ability to deliver on each of our performance objectives. I'm now turning the call over to John to discuss our operational performance. John?

Thank you, Gary. Fund delivered a strong third quarter across the board, outperforming our previous expectations. Our results reflect the combination of the stability of our best in class portfolio, as well as the contributions from our growth initiatives across all three of our business segments. For the third quarter, combined same community manufactured housing and RV NOI increased 12.4% from the third quarter of 2020. The growth in NOI was driven by a 12.8% revenue gain supported by a 150 basis point increase in occupancy to 98.9% and a 3.7% weighted average rental rate increase. Our expenses were up 13.7% from the prior year. Same community manufactured housing NOI increased by 2.6% from 2020 and same community RV NOI increased by 30.6%. Annual RV growth was 15.2% for the quarter as a result of a 5% rental rate increase and the effect of over 1,500 conversions to annual leases over the trailing 12 months. RV transient revenues were up 29% compared to last year. This is on top of the 5% transient growth we experienced in the third quarter of 2020 over 2019 when we began to see the benefits of travelers who were seeking drive-to vacation options and took advantage of our resorts and desirable destinations. When we issued second quarter results in late July, we shared the transient RV revenue for the second half of the year was 15.2% ahead of the original budget. Today, in accounting for the third quarter's actual contribution, it has accelerated to 18.3% ahead of original budget. As of this earnings call, our fourth quarter transient RV revenue is 19.6% ahead of the original budget. The increased levels of consumer engagement discussed last quarter have continued. Year-to-date RV website traffic is up 10% compared to last year and 120% compared to 2019, And we have seen our social media following and interaction continue to grow with more than 1.4 million followers on the three major platforms, Instagram, Facebook, and TikTok. Our best salespeople have always been our residents and guests, and their reach to spread the word has been meaningfully amplified through our social media engagements. We have also continued to sign up members to our pilot Sun RV Resorts loyalty program. And while it's still in its early days, initial interest and feedback have been very positive. In short, we believe we are seeing strong evidence of two important trends. First, that many travelers are learning of and trying out an RV vacation. And second, once travelers have discovered their sunnier side through an RV vacation, it becomes part of their future vacation considerations. Additionally, Sun has simplified the reservation process with our Camp Spot platform, which in turn enhances the demand for RV vacations at Sun RV Resorts. With respect to our total MH and RV portfolio, we continue to pursue our strategy of filling existing vacancy and creating additional revenue producing opportunities through expansion and conversions. In the third quarter, we gained 576 revenue producing sites. Of our revenue producing site gains, Over 430 were transient RV sites converted to annual leases, with the balance being added to our manufactured housing expansion communities. We have now converted almost 1,200 transient RV sites to annual leases year to date, which exceeds any prior full year figure and demonstrates the successful execution of this internal growth lever. The RV site conversions result in an average 50% increase in site revenues during the first year of conversion, with an additional benefit of transient site scarcity pushing rates. Moving on to new construction, in the third quarter, we delivered over 320 new sites, approximately 70% of which were greenfield ground-up developments, and the remainder were expansions to existing communities. One of the ground-up developments delivered this quarter was the next phase of Smith Creek Crossing, a manufactured housing community in Granby, Colorado. The first phase of 82 sites has been filling up rapidly since opening a year ago, and we anticipate this next phase to continue to see the high demand for attainable housing in the area. MH home sales in the third quarter were also strong. Total sales volume was up 64% year-over-year as we sold more than 1,100 homes in the quarter. These results are a clear reflection of the value proposition that a Sun manufactured housing community offers. healthy demand for these homes and the home value that is maintained in our communities applications to live in a sun community are up 13.2 percent year to date and we anticipate we will continuously strengthen our manufactured housing business given the tight housing market and the demand for quality attainable housing turning to the marina business we ended the quarter with 120 properties comprising nearly 45 000 wet slips and dry storage spaces which includes the acquisition of six properties for approximately $250 million completed in the third quarter. The Marina rental revenue growth for the portfolio of 75 properties owned and operated by Safe Harbor since the start of 2019 was 17.8% for the nine months of 2021 over 2019. This is a CAGR increase in rental revenue of 9.9% for the quarter and 8.5% year to date through the end of September 2021. Better than expected performance in the marina portfolio continues to come from demand for wet slips and dry storage spaces. We have also witnessed higher margins on the service business with Waterdale Marina Center and Rybovich being the leading contributors to this outperformance. Great service creates stronger slip rental demand and higher member retention. In summary, Sun's growth engines continue to deliver strong results. Our internal levers are driven by the fundamentals of Sun's operating platform and by expansion site deliveries. Our total MH portfolio stands at approximately 97% occupancy, providing us with more than 200 basis points of occupancy upside, as well as additional growth potential by adding further expansion sites over time. In the RV business, robust transient demand continues, and we also anticipate continued momentum and conversions of transient annual leases each year. We expect to build on our successful track record of delivering and filling expansion sites. We have an inventory of 7,500 expansion sites, a portion of which we intend to strategically deliver each year, targeting 10 to 14% unlevered IRRs. In addition, our external growth pipeline is robust across all three businesses, with opportunities to continue to consolidate each industry, as well as pursuing selective ground-up developments. We are pleased for our performance year to date, and we expect to continue delivering on our objectives. Karen will now discuss our financial results in more detail. Karen?