TCNGF - Single-Family Rental REITs: The 'Burbs Are Hot

• The 'Burbs are back - and hotter than ever. Single-Family Rental REITs have been one of the top-performing property sectors over the past year amid a COVID-driven "suburban revival."
• Single-Family Rental fundamentals are among the strongest in the REIT sector. SFR REITs reported near-perfect rent collection, record-high occupancy rates, and rent growth eclipsing 5% in their recent reports.
• Quieting the critics that questioned their ability to operate efficiently, SFR REITs have been leaders in using Property Technology (PropTech) to reduce costs, increase renter satisfaction, and fuel accretive growth.
• Surging home values can be a headwind, however, as investment yields compress when rent growth can't keep pace with price appreciation. Rising interest and mortgage rates could benefit these SFR REITs.
• Even before COVID ignited the suburban revival, the 2020s were already poised to be a strong decade for the U.S. housing industry, fueled by record-low housing supply and robust demographic-driven demand.

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