Flagship Communities REIT (MHC.U-T)

Top income pick, newest holding. Provides mobile and manufactured housing parks in US. Growth through acquisition, improves services and trappings of those acquisitions. Low monthly rental fee, increased a bit every year. Strong balance sheet. Yield is 4%, payout ratio only 40%.

Provides affordable home ownership when real estate is still expensive.

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.