Welcome to Arrived Homes’ Q3 2022 review! This article will review the occupancy, dividends, and appreciation of the 158 Arrived properties operating during Q3 2022.
In Q3, Arrived investors collectively earned over $373K in dividends, with annualized yields ranging from 2.4% to 7.9%. Of the 158 properties operating during the quarter, 82% were leased. However, it’s important to note that properties operating for at least three months have an occupancy rate of 92%.
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 market. The annualized dividend for each property is calculated by taking the Q3 dividend and extrapolating it out for an entire year.
Here’s a quick summary of the range of annualized dividends for each market in which Arrived operated a property during Q3. 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 87 properties. As a reminder, all Arrived properties launch at $10/share. We re-value the property and the value of the shares that investors buy quarterly after the property has been owned for six months.
Amid general market turmoil, Arrived properties held steady. 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 there is the potential that the current interest rate environment could lead to lower real estate prices.
In Q3 2022, Arrived investors observed over $1.54 million in appreciation, an average increase of 12.6% for the quarter. For properties receiving their first share price update this includes their 6 month introductory period.
The most significant factor in how much the properties appreciate is how long it’s been since the initial IPO for each property. See our historical returns page for more information.
Building Wealth for Arrivers
Year-to-date, Arrived has generated over $3.3 million in wealth for Arrivers everywhere, comprising of $675K in dividends and $2.7 million in property appreciation.
Closing Thoughts by Arrived CEO, Ryan Frazier
We started Arrived years ago with the mission of empowering anyone to access the wealth-building potential of real estate investing. This quarter has again shown the important role real estate can play in client portfolios. With inflation remaining stubbornly high and the Federal Reserve forced to continue aggressive rate hikes, equities markets have declined significantly. Meanwhile, our core real estate offerings remained steady, distributing consistent rental income and producing value growth for Arrived investors.
At the same time, we have been hard at work launching vacation rental investing as a new asset class for investors in Q3. We see a similar opportunity in this segment for investors to access potentially higher cash flows and diversify into new markets.
While uncertainty around inflation and future interest rates remain in the near term, we remain confident in the long-term wealth-building potential of real estate and are focused on finding the absolute best opportunities for Arrived investors across the country.