Who is singing such praises about investing in manufactured home communities?
Seeking Alpha (SA), a website focused on stock market news and financial analysis, extolls the wisdom in investing in Real Estate Investment Trusts (REITs) that cater to active seniors. SA profiled Sun Communities, Inc. (NYSE:SUI).
Besides operating all age communities, Sun has tapped into the expanding group of healthy and active seniors.
Their wisdom is confirmed by several sources including Care REIT (NYSE:HCN), which says that ”the number of people aged 75 and up is set to increase five times faster than the overall population.” That means that between 2014 and 2034 the number of people older than 75 will nearly double, going from 28 million to 52 million.
Other studies show that 85 percent of the 75 to 84 group doesn’t need help, and that 60 percent of the 85+ group doesn’t need a lot of help. It seems that REITs that provide housing to healthy boomers are set to see even more residents.
Obviously benefiting from this information, Sun Communities is taking steps to increase its holdings. Currently, this organization is involved in a $1.32 billion acquisition that will increase their holdings to 245 communities with approximately 90,000 home sites. More than half of these are located in Florida and Michigan. The deal, says SA, “expected to increase funds from operations between 5% and 8% next year once the multi-step deal is fully completed.”
Alpha didn’t mention Sun’s recent $258 million deal for 7 MHCs in the Orlando FL market, but MHProfessionals focused on the land lease community sector didn’t miss that or its implication.
Such interest in MHCs is good news for the manufactured housing industry. Older people, often being careful with their assets, often have the money to purchase a nice manufactured home in one of these choice communities. This appears to be a segment of the population on which manufactured housing professionals can cultivate and depend upon. ##
Related Stories:
- Investors Discover the WalMart of Affordable Housing
- Here comes the Senior Tsunami! By Paul Bradley, ROC USA.
- This month’s interview with Murex Properties CEO and new National Communities Council Chairman, Steve Adler.
- Yesterday’s closing quote on Sun’s stock is linked here; Sun recently hit a new 1 year high on their stock.
(Photo Credit: Sun Communities)
