REIT Rankings Overview
In our “REIT Rankings” series, we introduce and update readers to one of the thirteen REIT sectors. We rank REITs within the sectors based on both common and unique valuation metrics, presenting investors with numerous options that fit their own investing style and risk/return objectives. We update these rankings every quarter with new developments for existing readers.
We encourage readers to follow our Seeking Alpha page (click “Follow” at the top) to continue to stay up to date on our REIT rankings, weekly recaps, and analysis on the REIT and broader real estate sector.
Manufactured Housing Sector Overview
Manufactured Housing REITs comprise roughly 2% of the REIT Indexes (VNQ and IYR). Within the Hoya Capital Manufactured Housing Index, we track the two largest manufactured housing REITs within the sector, which account for roughly $12 billion in market value: Equity Lifestyle Properties (NYSE:ELS) and Sun Communities (NYSE:SUI).
UMH Properties (NYSEMKT:UMH) is the third manufactured housing REIT. Because of its small $300 million market capitalization, along with other atypical characteristics, we do not include UMH in our coverage, but the general discussion of manufactured housing still applies.
Above we show the size, geographical focus, and quality focus of the two manufactured housing REITs we track. While both REITs are fairly diversified across the country, we note that ELS has higher concentration in Florida while SUI has a large portfolio in Michigan. UMH’s portfolio is highly concentrated in the northern Appalachia shale region. REITs own less than 2% of the total manufactured housing units in the US. Five percent of all U.S. residents live on one of two million manufactured housing sites.
Dynamics of the Manufactured Housing Sector
(Equity Lifestyle Investor Presentation)
After decades of being overlooked and misunderstood by the investment community, Manufactured Housing (MH) communities, colloquially known as “trailer…