Posts Tagged ‘cash flow’

Two MHC REITs have Good Yields

August 28th, 2012 Comments off

Two of three residential real estate investment trusts (REITs) recommended as having a good yield by Marc Gerstein at seekingalpha are MHC owners. Noting the tight lending standards for potential homebuyers, the accompanying unpredictable job market, and the rise in the rental market, Gerstein says UMH Properties appeals to people of modest means who may become buyers. In the meantime, rental income is good for cash flow while waiting for the housing market to improve. As such, at 6.4% UMH is the highest yielding residential REIT, but because it depends upon the Dividend Reinvestment Program (DRIP) as a source of externally raised capital, “it’s the riskiest selection in the context of a generally lower-risk group.” MNHProNews has learned the other REIT is Sun Communities, which Gerstein says has a lower yield at 5.5%, but operates on a broader and more national scale in terms of the manufactured homes it offers, and presents less of a risk. He says Sun’s home sales, same-site occupancy and revenues are all up in the first two quarters of this year, and the company is expanding its portfolio.

(Photo credit: UMH Properties)

RV/MH Hall of Fame Museum Still Going

December 26th, 2011 Comments off

RVTimes tells the RV/MH Hall of Fame Museum in Elkhart, Indiana, has managed to keep its doors open despite a debt of nearly $5 million as of last April when Tom McNulty took the reins as executive director. He says, “There are some good things happening and actually our cash flow is better than it’s been in a couple of years. Attendance during the summer was 100 to 150 people a day and we are seeing greater returns from our convention center.” Noting that while continuing to operate in the red, he adds, “At times we think we see the light at the end of the tunnel, but then someone turns off the switch. It’s very frustrating to say the least.” The museum has a $900,000 line of credit with First Source Bank. The family of the late Boots Ingram, who founded Teton Homes, loaned the museum $3.1 million. Both loans were made when the economy was in better shape. Bill Garpow, chairman of the Hall of Fame, says discussion is ongoing with the Ingram family to help resolve the debt, and the convention center already has $100,000 in bookings for 2012. He notes, “The good news is that it’s hard to find anybody that doesn’t say we need the hall, that we need to support it, that it’s a good endeavor. That tells me that if people start feeling better about their situation, then our situation could also improve.”

(Photo credit: RV/MH Hall of Fame Museum)