Quote for Today:

“Opportunity is missed by most people because it is dressed in overalls and looks like work.”

– Thomas A. Edison

(Source)

The markets aren’t sure what they’re doing as I write this, reflecting continuing uncertainty about half a dozen very important questions about economic growth.

Maybe it’s more like a dozen. Perhaps even several.

Like it or not though, we just don’t know what we don’t yet. What we should know is that it’s foolish to keep jumping into and out of stocks every time some short-term wind blows.

That’s why I’d like to point you to the low-risk opportunity that is manufactured housing REITs. This isn’t a new subsector on my radar. I’ve written about it before.

But it’s really standing out to me these days, especially in the face of so much volatility.

Before you go judging manufactured homes on their stereotypical trailer park style, consider the possibility that stereotypes aren’t always accurate.

In this case, they can be well-manicured, well-maintained, perk-filled communities that offer much more affordable lifestyles than the normal housing options out there. And that’s especially true when REITs get involved.

Take Equity Lifestyle Properties (ELS), which just reported some stellar teaser information ahead of its official earnings call. The company:

• Beat Q4-20 funds from operations (FFO) estimates of $0.55 per share by $0.02, making for a 9.6% year-over-year gain
• Had enough cash on hand to take advantage of the commercial real estate buyer’s market last quarter by acquiring $214.5 million worth of new assets
• Introduced full-year 2021 FFO midpoint guidance of $2.31 per share, which would be a 6.5% year-over-year gain if true.

There was some moderately disappointing news in there too, I’ll admit – like how EPRT raised its dividend to $1.45. That’s a “mere” 5.8% increase over 2020 as compared to the 7% increase analysts wanted to see.

But if you can live with that kind of “disappointment” in this kind of environment, I suggest you try reading my new special report, “Manufactured Housing: The Ultimate Sleep Well at Night Property Sector.”

It’s filled with facts supporting a favorable industry outlook…

The promise of consistent and steady rent increases (even if they’re “only” in the 5%-6% range)…

Limited capital expenditure demands that are the lowest in the real estate universe at around just 3.5%…

And very wide moats.

You can learn more about them for free today. And by free, I’m not referring to a two-week test drive. I mean it’s yours with no money down and no money on the line either.

Click here to see the profit potential I’m talking about. Considering last night’s EPRT news referenced up above, I can’t imagine you’ll be disappointed.

The World According to Commercial Real Estate

Welcome to REIT earnings season, where we get so much news in every single day. We’re just entering the very start of it right now, but now really is the time to get yourself as closely tied to some reputable news source as possible.

That way, you get to know news like this (and hopefully much, much more):

• Prologis (PLD) announced $0.92 per share Q4-20 core FFO and gave 2021 guidance of $3.88-$3.98. It also says its portfolio-wide average occupancy levels were up to 95.8%, its tenant retention had risen to 78.4%, cash same-store net operating income was up 3%, and cash rent change was up 13.4%.
• Realty Income (O) announced that Michael Pfeiffer, the company’s current executive vice president, chief administrative officer, general counsel, and secretary will be stepping down at the end of June after a 30-year run with the company. Michelle Bushore will be stepping in as EVP, chief legal officer, general counsel, and secretary on February 8 to ease into the position.
   
• PEB monetized 14 rooftop wireless leases by granting long-term easements at 11 of its properties. Those efforts generated $12 million in net proceeds with a 5.5 net income cap rate.

Next up, let’s take a look at Monday’s winners and losers.

(The Daily REIT Beat)

As seen above, several of our REIT picks bounced yesterday thanks in large part to what appears to be a short squeeze. I’ll continue monitoring that situation, of course.

In the meantime, here’s wishing you a happy, healthy Tuesday trading day. And remember…

Don’t let the short-term stuff get you down. There’s a whole lot more out there to be aware of.