Zacks reports that among the following five companies in the residential real estate investment trust (REIT) industry, Sun Communities shares ranked the best in their Debt to EBITDA ratio. The measure of a debt’s pay back is the the Debt/EBITDA. According to this metric, the longer the payback period increases the risk. The metric ignores tax expenses, though those are cash payments paid first. Among the 5 residential REITs measured, Sun Communities has a Debt/EBITDA ratio of 10.13x based on total debt of $1.3 billion. UDR has a Debt/EBITDA ratio of 9.97x based on total debt of $3.7 billion. Apartment Investment & Management has a Debt/EBITDA ratio of 9.32x based on total debt of $5.4 billion. Essex Property Trust has a Debt/EBITDA ratio of 8.63x based on total debt of $2.3 billion. Home Properties has a Debt/EBITDA ratio of 8.42x based on total debt of $2.5 billion. Sun Communities is one of the largest land-lease community operators in North America in the manufactured home community business.
