How Is 36% Annually For Performance?

Quote for Today:

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

– Thomas A. Edison


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.

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Brad Thomas is the Editor of the Forbes Real Estate Investor.

Disclaimer: This article is intended to provide information to interested parties. As ...

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