Arrived, the real estate investment platform that allows individuals to buy shares in single-family rental properties, has released its financial performance report for the first quarter of 2024. The company reported a strong quarter, with investors earning more than $1.1 million in dividend income, a 16% increase from the previous quarter.
During Q1 2024, 352 individual properties paid out dividends, with single-family residential properties earning an average annualized dividend of 3.8% and vacation rental homes earning an average of 3.4%. The Arrived Single Family Residential Fund, which launched in 2023, earned an average annualized dividend of 4.0%.
Update: Arrived is launching three new properties on its platform, with a minimum investment of $100. The offerings can be previewed here.
“Despite affordability challenges, we’re continually impressed by the resilience of the residential real estate market,” said Cameron Wu, VP of Investments at Arrived, in a statement. “While sustained higher interest rates and persistent inflation have tempered expectations for rate reductions, home prices remain steady. This underscores the importance of strategic precision and market selectivity.”
Wu also noted that Arrived is focusing on areas with strong macroeconomic tailwinds, such as population and job growth, and favorable tax schemes, aligning with the company’s strongest convictions.
In addition to strong dividend performance, Arrived also reported several product updates, including the launch of Cash Balance, which allows investors to receive dividends directly to their Arrived account and reinvest or withdraw funds at any time. The company also revamped its property pages to include a comprehensive property timeline for all single-family residential properties and vacation rentals, and implemented two-factor authentication across all investor accounts.
Share price performance was mixed during the quarter, with single-family residential properties seeing an average share price change of -1.5% from Q4 2023 to Q1 2024, and vacation rental properties experiencing an average share price change of -2.9%. However, the company emphasized that real estate tends to perform best as a long-term investment, allowing investors to navigate through various market cycles and maximize returns.
“As we enter the peak season for long-term rentals, our leases are strategically structured to mostly expire between March and June, minimizing lease-up times and maximizing new rents,” added Wu. “This positions us well to capitalize on seasonal demand for rentals. Additionally, our vacation rental portfolio is experiencing robust growth, boasting nearly 60% occupancy rates across our portfolio, with 11 properties managed internally by Arrived.”
Arrived closed Q1 2024 with a stabilized occupancy rate of 92% for single-family residential properties and 95% for properties in the Arrived Single Family Residential Fund. The company also reported strong performance in its vacation rental portfolio, with $705,777 in gross booking revenue across all operational vacation rentals in Q1.
While the real estate market faces challenges, Arrived remains optimistic about the opportunities for investors. By focusing on strategic market selection, operational enhancements, and a commitment to transparency, the company aims to continue delivering value to its investors in the coming quarters.
Investors interested in becoming fractional owners of rental properties can view offerings on the Arrived website.
Image courtesy of Arrived.
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