CSR - Great REITs Are Never Cheap

• Riding the tailwinds of the affordable housing shortage across the United States, manufactured housing REITs outperformed the REIT index for a remarkable eighth-straight year in 2020.
• Pressured by the 'REIT Reopening Rotation,' however, MH REITs have uncharacteristically underperformed in early 2021 even as fundamentals remain stellar and all three REITs have already increased their dividends.
• "Work From Anywhere" trends have powered a surge in RV, boat, and second-home sales which have provided an added external growth tailwind while same-store "organic" growth metrics remain impressive.
• A traditionally countercyclical sector, MH REITs have historically been one of the most interest-rate-sensitive REIT sectors. Continued diversification into RV parks and boat marinas should provide a procyclical counterbalance.
• Stellar fundamentals don't come cheap, but valuations are as attractive as they've been in a half-decade relative to other REIT sectors. Housing should be a bright spot in the REIT sector in 2021.

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