Manufactured housing REITs poised to outperform, Mizuho says

Investing.com -- Manufactured housing real estate investment trusts are set to outperform other residential REIT categories in the near term, according to a new note from Mizuho, which initiated coverage on the sector with an upbeat outlook.

Analyst Haendel St. Juste wrote that manufactured housing REITs appear positioned as “near-term ‘winners’ among Residential REITs,” citing supply constraints, affordability advantages and demographic support.

Mizuho added that the subsector faces “less demand risk from slowing macro and tech-AI job disruption” compared with apartments and single-family rental operators.

Mizuho named Equity LifeStyle Properties (NYSE: ELS) its top pick, assigning an outperform rating and a $72 price target, noting the REIT’s “sizable discount vs history” and “leading 26E/27E FFO growth profile.”

The firm also initiated Sun Communities (NYSE: SUI) with an outperform rating and a $143 price target, pointing to potential “earnings upside from 1031 (marina sale) capital reinvestment and potential U.K. Parks Holiday sale.”

St. Juste believes the group should benefit from improving conditions in the RV segment, which has weighed on results but is expected to stabilize.

Mizuho expects transient RV demand to show an inflection in the second quarter, with its proprietary survey indicating stronger bookings and better occupancy.

The firm forecasts 2026 core FFO per share growth of about 3.7%, followed by stronger performance in 2027 as occupancy and pricing improve.

Manufactured housing REITs, Mizuho said, have historically proven defensive during downturns and “are viewed as a ‘safe haven’ amid the current volatile macro.”

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