Only 17% of SUI's revenue is economically sensitive. A recession will reduce transient RV revenue, but SUI will also reduce variable costs in connection therewith. Therefore, a recession will have minimal effect on SUI's bottom line. Otherwise, SUI is recession-proof.
Yeah, yeah, a recession may slow home sales, but the margin on that is peanuts.
And yes, a recession may slow the rate of rent increases from 4% to 3%.
Otherwise, SUI is recession-proof.
The market today threw out the baby (SUI) with the bath water.
While I am very reluctant to buy something yielding less than the rate I am paying Fidelity for margin loans, SUI has become compelling.