Welcome to Arrived’s Q3 2025 review! Let’s review the dividends and appreciation ranges of the 456 Arrived properties operating during Q3 2025.
In Q3 2025, investors earned more than $2.75M in dividend income, representing an approximately 15% increase from Q2 2025. In Q3 2025, individual single family residential properties earned an average annualized dividend of 4%, and vacation rental homes earned an average of 2.4%.
This quarter, we launched the Arrived Secondary Market, allowing investors to sell shares and for others to invest in properties or markets that they may have previously missed.
Dividends
Dividends earned can vary by investment. In Q3 2025, individual single family residential properties paid an annualized dividend between 0.4% to 10.4%, with a 4%¹ average. Vacation rentals paid an annualized dividend between 0.4%-9.3%, with an average of 2.4%¹.
The Arrived Single Family Residential Fund paid an annualized dividend of 4.2%, and the Arrived Private Credit Fund generated income, resulting in an average annualized dividend of 8.36% for Q3.
You can view the dividends for each property on our Historical Returns page.
The annualized dividend for each property is calculated by taking the Q3 dividend and extrapolating it out for an entire year. Building a diversified portfolio across multiple markets can be a great strategy to minimize concentration risk, gain exposure to different real estate markets, and earn passive income.
The chart below shows the combined realized dividends and unrealized appreciation of single family residential and vacation properties.
Properties may have lower total returns in the first six months because they have only received dividends and have not received an appreciation update. Historically, rental property investments have performed best when held for the long term.
This chart illustrates the potential benefits of diversification and dollar-cost averaging in the real estate market. Diversifying your portfolio by investing in a mix of single family residential properties, vacation homes, and debt and equity products, such as the Arrived Private Credit Fund and the Arrived Single Family Residential Fund, can be an effective strategy for mitigating risk.
In Q3 2025, 56 Arrived Single Family Residential Fund properties contributed to an average annualized dividend of 4.2%.
The Arrived Private Credit Fund generated income in Q3, resulting in an average annualized dividend of 8.4%. To date, more than $64M has been invested in the fund. The Private Credit Fund added 30 new loans in Q3 2025.
Tracking your investment performance
Investors can continue tracking two core performance metrics on their Portfolio Page: Property Value and Arrived Valuation.
Property Value: Track the real assets behind your returns
Each property’s estimated market value—calculated using a combination of comparable sales and income-based approaches—is now available in your portfolio view. These estimates help you monitor how real estate market conditions are impacting the underlying assets in your portfolio over time. You’ll see both the current estimate and the percentage change since the last valuation update.
- What is it? Property Value reflects the estimated market price of a home, similar to estimates you might find on platforms like Zillow or Redfin.
- Where to find it? On your Portfolio Page, you can review the estimated Property Value for each investment, along with any changes since the previous period.
Arrived Valuation: A comprehensive look at your estimated investment value
The Arrived Valuation provides an updated estimate of the current value of each share you own. This metric combines the property’s estimated market value with the LLC’s overall financial position—including cash reserves, outstanding loans, and amortized expenses—to give you a clearer picture of your investment’s estimated worth.
- What is it? Arrived Valuation = Property Value + Assets - Liabilities. This reflects the estimated current value of your shares based on today’s conditions, not future projections.
- Where to track it? You can view the Arrived Valuation and its percentage change directly on your Portfolio Page and in your quarterly report.
For a deeper dive into how these metrics are calculated, you can read more about Arrived Valuation here.
Below, you’ll find a chart that shows the estimated market value performance for the individual rental properties in the Arrived portfolio.
Navigating short-term value changes: real estate is built for the long term
When considering Arrived Valuations, it's crucial to understand the high initial costs and longer ramp-up time needed to increase the potential for strong income performance.
In the early stages of investing in a single family residential property, macroeconomic factors such as prevailing mortgage rates, the strategic use of leverage, and the prevailing market prices of homes can significantly impact initial total returns.
This process follows the investment J-curve pattern. Initially, lower dividends or share prices can accompany larger upfront investments in things like property improvements. This dip represents the low point of the J-Curve. As the property stabilizes, returns can increase, reflecting the growth period of the curve. It's essential to remember that real estate tends to perform best as a long-term investment, enabling investors to navigate various market cycles and maximize their potential returns.
Operational performance
Single Family Residential stabilized occupancy
Arrived closed Q3 2025 with an average stabilized occupancy rate of 92.5%² for the single family residential properties in operation during the quarter. This was helped by 110 new leases started in Q3. It’s also worth noting that the average term on these leases was 18.7 months, with 86 leases above the forecasted rent.
Vacation Rental performance
In Q3 2025, there were 39 bookable vacation rental properties. Here are some highlights from the quarter for this asset class:
- $649,074 in gross booking revenue across all operational vacation rentals in Q3³
- 26 total vacation rental markets as of Q3 2025
- Q3 2025 ended with an average guest rating of 4.92 out of 5.0 stars⁴
In Q3 2025, a total of 39 vacation rentals were in operation. The table below outlines the gross booking revenue and average guest rating for each property. Gross booking revenue is presented before deductions for property management fees, operating expenses, and repairs or maintenance costs.
¹ Booking revenue and guest rating were affected by the transition to a new property manager.
² Booking revenue was impacted due to a maintenance issue.
See the Property History Timeline for individual updates for each property.
Want to stay at an Arrived vacation rental? Add it to your Airbnb wishlist ✨
Arrived Single Family Residential Fund and Seattle City Fund Occupancy
Arrived closed Q3 2025 with an average stabilized occupancy rate of 97.9%² for the properties in operation in the Single Family Residential Fund during the quarter. This was helped by the start of 3 new leases in Q3.
In Q3 2025, 3 properties in the Seattle City Fund completed renovations, entered the rental market, and were successfully leased.
Closing Thoughts By Arrived VP of Investments, Cameron Wu
“As we close out the third quarter of 2025, the housing market continues to show signs of cautious optimism. Mortgage rates have eased slightly, with the conventional 30-year fixed rate moving from around 6.7% to 6.3%. That change has given both investors and homebuyers some welcome breathing room.
In this environment, we continue to favor new home inventory. Builders are offering meaningful discounts and incentives to move homes, creating opportunities for buyers. With many existing homeowners holding onto low-rate mortgages, resale inventory remains limited — a dynamic that keeps new construction particularly attractive.
On the credit side, our performance has remained strong. The Private Credit Fund has now surpassed $60 million in total investments since its launch 17 months ago, with more than 100 loans successfully repaid and no losses of principal or interest. Our disciplined focus on high-quality, short-duration credit has proven resilient.
While we’ve seen some modest pressure on borrower rates due to reduced project volume, our investments team has executed with increasing precision. This allowed us to improve the average dividend yield from an annualized 8.1% historically to 8.3% in Q3. We remain confident in our strategy and optimistic about our ability to continue meeting our rate targets.”
