Who Likes Work? These REITs Could Help You Retire (Early)

Core Insights - The article discusses the ongoing trend of early retirement among workers, particularly those under 62, with a significant decline in the expectation to work past this age compared to pre-pandemic levels [3][5][29] - It highlights the impact of the stock market and high-yield investment options on retirement decisions, suggesting that many individuals are opting for early retirement due to favorable financial conditions [7][8][30] Labor Market Trends - A New York Fed survey revealed that only 45.8% of respondents under 62 expect to work past that age, down from 55.4% in March 2020 [3][5] - The labor force participation rate for older workers has reached its lowest point since 2007, contrasting with the highest participation levels among younger workers since 2002 [5][6] Investment Opportunities - The article presents two REITs, EastGroup Properties (EGP) and Sun Communities (SUI), as attractive investment options for both retirees and younger investors seeking income and growth [8][30] - EGP focuses on industrial properties in high-growth Sunbelt markets, with a market cap of approximately $8 billion and a 3% dividend yield, supported by a strong occupancy rate of 98% [10][11][13] - SUI, the largest operator of manufactured housing communities in the U.S., offers a 3.1% dividend yield and has demonstrated stable growth in net operating income, outperforming multifamily peers [17][25][30] Financial Performance and Projections - EGP has a five-year dividend compound annual growth rate (CAGR) of 12.6% and is expected to grow per-share adjusted funds from operations (AFFO) by 11% this year [13][14] - SUI has a five-year dividend CAGR of 5.3% and is projected to see growth in AFFO of 7% and 6% in 2025 and 2026, respectively [25][26][30] Conclusion - Both EGP and SUI are positioned for sustained growth and reliable income, making them suitable choices for investors looking for consistent returns and dividend growth [28][30]