These REITs Could Solve The Housing Crisis And Put Money In Your Pocket

Manufactured homes real estate investment trusts (REITs) own and operate manufactured home communities, also known as mobile home parks, where individuals rent land for their manufactured homes or rent both the home and the land.

Like all REITs, manufactured home REITs are legally required to distribute a large percentage of their taxable income to shareholders through dividends, often resulting in high yields.

If you're interested in investing in manufactured home REITs, here are three to put atop your shopping list.

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UMH Properties

As of June 30, UMH Properties Inc. UMH owned and operated 136 manufactured home communities containing approximately 25,800 development homesites. The communities are located in 11 states, including 53 in Pennsylvania, 38 in Ohio, and 14 in Indiana.

UMH currently pays a quarterly dividend of $0.215 per share, which equates to an annualized dividend of $0.86 per share and gives its stock a yield of about 4.4% at the time of this writing.

UMH has also been growing its dividend. It has raised its annual dividend payment each of the last three years, and its 4.9% hike in April puts it on pace for 2024 to mark the fourth consecutive year with an increase.

Sun Communities

As of June 30, Sun Communities Inc. SUI owned, operated or had ownership interests in 666 developed manufactured homes, recreational vehicles and marina properties containing approximately 181,760 developed sites and 48,140 wet slips and dry storage spaces. Its properties are located across the U.S., U.K. and Canada.

Sun Communities currently pays a quarterly dividend of $0.94 per share, which equates to an annual dividend of $3.76 per share and gives its stock a yield of about 2.85% at the time of this writing.

Like UMH, Sun Communities has been delivering dividend growth for its shareholders. It has raised its annual dividend payment each of the last seven years and its 1.1% hike in February puts it on pace for 2024 to mark the eighth consecutive year with an increase.

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Equity Lifestyle Properties

As of July 22, Equity Lifestyle Properties Inc. ELS owned or had ownership interests in 452 properties in 35 U.S. states and one Canadian province containing approximately 172,866 sites. Its properties include manufactured home communities, recreational vehicle resorts, campgrounds, and marinas.

Equity Lifestyle currently pays a quarterly dividend of $0.4775 per share, which equates to an annualized dividend of $1.91 per share and gives its stock a yield of about 2.7% at this time.

Equity Lifestyle has the longest active streak of annual dividend increases of all manufactured home REITs. It has raised its annual dividend payment for an incredible 19 consecutive years, and its 6.7% hike in January puts it on pace for 2024 to mark the 20th consecutive year with an increase.

Better Yields Than Some REITs?

The current high-interest-rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through REITs.

Arrived Homes, the Jeff Bezos-backed investment platform has launched its Private Credit Fund, which provides access to a pool of short-term loans backed by residential real estate with a target 7% to 9% net annual yield paid to investors monthly. It paid 8.1% in July. The best part? Unlike other private credit funds, this one has a minimum investment of only $100. 

As long-term rates go down and short-term rates stay high, there’s a unique chance to invest in fix & flip loans before yields drop. Check out Benzinga's favorite high-yield offerings.