Covered, compounding — steady land-lease rent. A 3.57% yield on a $0.5425 quarterly dividend, raised in January 2026 from $0.515, is covered on a normalized FFO basis: Q3 2026 normalized FFO was $0.79 per share against the $0.5425 dividend, about a 69% payout. Core property operating revenues rose 4.4% in Q3, and debt to EBITDAre was 4.3×.
Key risk: RV and marina cyclicality — manufactured-housing rent is steady, but RV and marina income moves with discretionary travel, and rent growth faces affordability pressure.
Changes if: Normalized FFO payout pushes well past ~69%, or core property revenue growth stalls. The cushion, not the headline yield, is the tripwire.
- ✓FFO coverage check: Normalized FFO of $0.79 per share in Q3 2026 covers the $0.5425 quarterly dividend — about 69% paid out (Q2: $0.74 vs. $0.5425, about 73%).
- ✓Yield check: 3.57% indicated — $0.5425/qtr × 4 at the $60.84 close on Oct. 23, 2026. Earned land-lease and property income, not a special or return of capital.
- ✓Balance-sheet check: Debt to EBITDAre of 4.3×, with total debt, net of $3.31 billion at Sep. 30, 2026; core manufactured-housing base rental income rose 5.7% in Q3.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.