Flagship Communities REIT (MHC.U.TO)

(A Top Pick Jan 31/23, Up 0.7%)

A pure-play manufactured home communities company with over 60 in the US midwest. Most of their residents own their own homes mortgage-free, so the base is solid. Low capex. A fragmented industry. Free cash flow is growing through rising rents and strong demand. They grow their dividend. The stock has performed well against REITs.

Manufactured home communities have been the best sector within real estate along with storage. MHC own 60 communities in the US midwest. Cities aren't issuing new permits to these communities. MHC is consolidating a very fragmented business in the U.S. They can raise rents. Are building parts in those areas, and are raise occupancy in low-occupancy areas. Have been raising the yield to 3.6% currently. Cheaper than other REITs. Great to own long term.

(Analysts’ price target is $19.90)

(A Top Pick Sep 20/21, Down 11%) Owns 63 manufactured housing communities in the US midwest. Low capex, stable, no rent control, fragmented. Increasing AFFO and occupancy rate. Inflation- and recession-proof.

A unique and stable asset class. 58 manufactured housing communities. It is a fragmented industry which they are consolidating. (Analysts’ price target is $20.83)

Great, stable, recession-proof business. Unique management team. Based in the US. Great consolidation opportunities. Nice safe holding, potential for long-term, steady growth. Great asset class.