Manufactured Housing REITs: Not Enough Homes, So Onto Boats

Daily Recap

• Manufactured housing REITs have proven to immune from coronavirus-related headwinds that have slammed much of the real estate sector, collecting nearly 100% of rents while also boosting dividends this year.
• Driven by the macroeconomic tailwinds associated with the affordable housing shortage and favorable demographics, Manufactured Housing ("MH") REITs have been the best-performing real estate sector of the past decade.
• External growth through acquisitions has provided an added boost. Amid this housing shortage, MH REITs have begun investing in a new - but fundamentally similar - asset class: boat marinas.
• Headwinds become tailwinds: After a sharp slowdown in late-Spring, recreational vehicle and boat sales have smashed records this summer while the U.S. housing market has roared back to life.
• MH REITs aren't cheap, but long-term fundamentals remain stellar for this "essential" property sector. Low supply and strong demographic-driven demand for housing continue to provide a compelling backdrop.

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Disclosure: A complete list of holdings and Real Estate and Housing Index definitions and holdings are available at HoyaCapital.com. Hoya Capital Real Estate advises an Exchange Traded Fund listed on the NYSE. Hoya Capital is long all components in the Hoya Capital Housing 100 Index.

Additional Disclosure: It is not possible to invest directly in an index. Index performance cited in this commentary does not reflect the performance of any fund or other account managed or serviced by Hoya Capital Real Estate. Data quoted represents past performance, which is no guarantee of future results. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy.