Sun Communities: Buy, Sell, or Hold?
Roughly half of Sun Communities' (NYSE: SUI) business is about providing affordable housing. The rest is tied to lifestyle-based recreation. This is not your typical real estate investment trust (REIT). Is the combination of assets it owns worth buying? Or is this a situation where dividend investors would be better off going with a more traditional landlord? Here's what you need to know.
From a top-level view, 45% of Sun Communities' rental income comes from U.S. manufactured housing communities. Another 8% or so comes from similar assets located in the United Kingdom. These properties offer affordable housing options to people who either need lower-cost accommodations or want to keep costs down while still having a second residence. It's a pretty reliable business, since there aren't a lot of low-cost options when it comes to "owning" a home.
Image source: Getty Images.
Source Fool.com
