Got $500? This Top-Performing Investment Could Continue to Deliver Resilient Returns.

Industry Overview - Manufactured home communities have been some of the best-performing real estate investments over the past couple of decades due to durable demand for space [1] - Demand for manufactured home communities, RV parks, and marinas is strong and resilient, with limited new supply coming to the market each year [4] - Relocating a manufactured home to another community can cost thousands of dollars, making most owners stay in their homes or sell to new owners, contributing to the resiliency of the sector [6] Company Overview - Sun Communities is the leading owner of manufactured home communities, with 288 communities and about 97,000 sites in North America [3] - The company also owns 179 RV communities, 138 marinas, and 54 U.K. holiday parks, making it the largest publicly traded owner and operator in these niche markets [3] - Manufactured housing supplies about 45% of its rental revenue, followed by RVs (26%), marinas (21%), and U.K. holiday parks (8%) [3] Financial Performance - Sun Communities has increased rents at its manufactured home communities by at least 3.4% annually over the past decade, while RV rental rates have grown by a minimum of 2% annually [4] - The company has delivered positive same-property net operating income (NOI) growth every year for over two decades, with a compound annual growth rate of 5.2% since 2000, outperforming the REIT sector average of 3.2% [5] - Since its IPO in 1993, the company has increased its dividend by 111%, with an average annual total return of 12.6%, outperforming the S&P 500's 10.6% return [10] Growth Drivers - Sun Communities plans to boost rents at its manufactured home and RV communities by more than 5% in 2025, while increasing rents at marinas and U.K. holiday parks by 3.7% [7] - The company has 900 expansion and development sites delivered over the past couple of years, with potential for more occupancy gains [8] - Sun Communities has been converting transient RV sites to annual leases, which generate more income by reducing vacancies [8] - The company has a strong investment-grade balance sheet, enabling it to make acquisitions, such as Safe Harbor Marinas for $2 billion in 2020 and Park Holidays UK for $1.3 billion in 2022 [9] Investment Potential - Sun Communities currently offers a 3% dividend yield, more than double the S&P 500's yield, providing a solid base return for investors [11] - The company's steady income growth and above-average total returns make it a potentially enriching long-term investment [12]