Welcome to Arrived Homes’ Q2 2022 review! This article will review the occupancy, dividends, and appreciation of the 113 Arrived properties operating during Q2 2022.
In Q2, Arrived investors collectively earned nearly $182,000 in dividends, with annualized yields ranging from 3.0% to 7.6%. Investors earned $719,000 in property appreciation this quarter. The 51 properties with updated Share Prices saw a 10.3% increase in appreciation. Overall, the properties are 88% leased.
When investors purchase a property, it’s often right after Arrived has identified and acquired the home. From the IPO date, properties go through an improvements process, where our team will do value-add fixes and add items like fences. For that reason, properties are typically vacant for at least a few weeks after IPO.
Here’s a chart that shows the dividend for each property. The annualized dividend for each property is calculated by taking the Q2 dividend and extrapolating it out for an entire year.
Here’s a quick summary of the range of annualized dividends for each market that Arrived operated a property in during Q2. Building a diversified portfolio across markets is a great strategy to get exposure to different real estate markets and start earning passive income.
You can view the dividends for each individual property on our Historical Returns page.
In April 2022, Arrived debuted a new feature: Share Prices. Share Prices are a way to see the value of your investment change over time, much like you would track a portfolio of stocks.
This quarter, we updated the Share Prices for 51 properties. As a reminder, all Arrived properties launch at $10/share. After 6 months, we’ll re-value the property and the value of shares that investors buy. After the initial 6-months, we’ll re-value the shares quarterly.
Amid general market turmoil, Arrived properties held steady and some even increased in value. Real estate values are typically less volatile than the stock market, so even as the housing market has cooled slightly, the prices haven’t changed nearly as dramatically as stocks or crypto have. However, it’s important to note that past performance is not indicative of future results, and many believe that the current interest rate environment could lead to a downturn in the real estate market in the future.
Here’s the average appreciation in share value for the properties. The largest determination of appreciation is how long it’s been since the initial IPO for the property.
The largest factor in how much the properties appreciate is how long it’s been since the initial IPO for each property. This chart summarizes the gain in share prices by the different IPO dates. We’re big believers in holding for the long term!
Closing Thoughts by Arrived CEO, Ryan Frazier
As Arrived continues to grow, we remain committed to our mission of creating access to single-family rental homes through this new category of investing. Amidst the turmoil in the stock and crypto markets, we believe that the long-term steady price appreciation and consistent passive income this asset class presents can remain an important hedge against inflation and other market conditions. As is always the case, the future is unpredictable. While we monitor market changes like interest rates and inflation, our team will continue to focus on these fundamentals that have made rental properties such a fixture of portfolios for decades.
Beyond that, with the many new properties, new cities, and launch of vacation rental homes, we are excited about what’s ahead for investors.