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Sun Communities Under the Hood – Data Reveals – Manufactured Homes, Communities, Comparisons with Conventional, Multifamily Housing

April 12th, 2019 Comments off

 

SunCommunitiesLogoSUIDataRevealsManufacturedHomeCommunitiesComparisonsWithConventionalMultiFamilyHousingDailyBusinessNewsMHProNews

Someone might take HBO’s Last Week Tonight with John Oliver satirical hit on “Mobile Homes” at face value.  For those lacking sufficient insight, they might be left with the impression that buying a manufactured home is stupid, because the industry is filled with nothing but heartless sharks.  The examples they gave included Warren Buffett, Clayton Homes, and Frank Rolfe, among others.

 

While the industry arguably has problems, as the fact-check of Oliver’s video linked here reflects, those internal and external challenges are from a minority of firms, not the majority.

 

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MHProNews is pro-free enterprise, as well as pro-consumer. Money honestly earned is to be celebrated, not denigrated. What John Oliver’s report spotlighted does not apply to all firms, it only applies to a few, albeit typically larger ones.

 

What follows is not a fact check, but rather a review of the most recent Sun Communities investor relation information.

This is not an endorsement, nor a critique.  Publicly traded companies are not guaranteed to provide accurate information, but they certainly are required to provide accurate information with plenty of disclosures.

SunCommunitiesIncSUIManufacturedHomeSalesPriceComparisionConventionalHousingCostFeb2019IRDec312018DataManufacturedHomeCommunityDailyBusinessNewsMHProNews

This first slide addresses the surprising value comparison, that Oliver’s video did note. Oliver’s video called for communities to become ROCs – resident owned communities. As Paul Bradley, ROC USA President , cited by Oliver’s video, told MHProNews, there are good community operations. It would be unfair to reject them all, they should be discerned on a case by case basis. Beyond ROCs, Oliver did not provide any options that could supplant the value that manufactured homes offers the public, particularly those who may not be in a position to afford a conventional house.

 

The timing for this report here on MHProNews is relevant for this reason.

 

SunCommunitiesIncSUIRentalofManufacturedHomeVsOtherRentalComparisionsFeb2019IRDec312018DataManufacturedHomeCommunityDailyBusinessNewsMHProNews

 

While the Oliver video, relying in good measure on the MHAction white paper previously reviewed on the Daily Business News. So careful, regular MHProNews readers were not taken by complete surprise by the claims by MHAction and their strategic allies – the Private Equities Stakeholder Project and Americans for Financial Reform – in their strike on the industry’s giants. ICYMI, the report is found at the linked text-image box below.

 

“Billion Dollar Empire Made From Mobile Homes,” What Washington Post’s Peter Whoriskey Didn’t Report

 

With that brief backdrop, let’s unpack some information developed by Sun Communities Inc (SUI).

 

SunCommunitiesIncSUI-MHGrowthRVGrowthMHProductionVsShareSingleFamilyHousingStarts-Feb2019IRDec312018DataManufacturedHomeCommunityDailyBusinessNewsMHProNews

Manufactured housing is underperforming, as the third graphic above reveals. What the second graphic doesn’t reflect is that 20 years ago, RVs trailed manufactured home (MH) production by 3 to 2 in favor of MH. Today, RVs outsell MH by some 5 to 1.

 

Per their website, The company owns and operates or has an interest in 371 manufactured housing and recreational vehicle communities located in 31 states throughout the United States and Ontario, Canada, as of December 31, 2018. Sun Communities’ portfolio consists of over 128,000 developed sites.”

 

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They added that, “Established in 1975, Sun Communities became a publicly owned corporation in December, 1993. The company is a fully integrated real estate investment trust (REIT) listed on the New York Stock Exchange under the symbol: SUI.”

 

SunCommunitiesIncSUIFactorsPoweringGrowthFeb2019IRDec312018DataManufacturedHomeCommunityDailyBusinessNewsMHProNews

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The SUI stock trend for the last five years was inserted by MHProNews as shown above, per Bloomberg on 4.11.2019.

 

SunCommunitiesIncSUIOperatingFinancialGuidanceFeb2019IRDec312018DataManufacturedHomeCommunityDailyBusinessNewsMHProNews

The screen captures shown are from their most recent Investor Relations (IR) presentations herein are not necessarily in sequence.  Once more, our purpose here is to use their information to shed new light on the MHAction white paper, which was a behind-the-scenes driver for Oliver’s viral video.

A secondary benefit of this report is to clarify for investors and perhaps shaken, newcomers to our industry that this industry isn’t as predatory as some might want to make it appear to be.   The balance of the Sun IR report is found here as a download.

That MHAction white paper spotlighted some egregious scenarios that have in fact occurred in the industry. Here on MHProNews and our sister site – MHLivingNews – we’ve features some of the same data, but always with bright line distinctions between the few that do such deeds, vs. the balance who strive to do business in an honorable fashion.  Why didn’t MHI make that argument?  Or is it because those who were spotlighted where essentially all tied to MHI, and the Omaha-Knoxville-Arlington axis?

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To see a sample of our emailed news update, click here. To sign up for the factory-built home industry’s #1 headline news, click here or the graphic above.

That’s this morning’s initial edition of News through the lens of manufactured homes, and factory-built housing.” © where “We Provide, You Decide.” © ## (News, analysis, and commentary.)

 

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Related Reports:

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For Want of a Nail – Manufactured Housing

Michigan Association’s Video Campaign, What They’ve Said About Manufactured Home Living

 

Bryan Manufactured Homes Ban Passed, But Petition Count, Other Legal Moves May Stop Texas City

HBO’s John Oliver on Last Week Tonight Mobile Homes Video, Manufactured Home Communities Fact Check

 

Why is Seattle Dying? Affordable Housing, Misplaced Compassion, and Manufactured Homes

MHARR Calls on New Fannie Mae CEO Hugh Frater to Fully and Properly Implement Federal Law

HUD Study, Analysis of Zoning Discrimination Against Manufactured Housing Sought

 

 

 

 

 

Talk Radio “Open for Business Host” Tom Egelhoff Sounds Off On “MOBILE HOMES” as “AFFORDABLE HOUSING ANSWER”

May 1st, 2018 Comments off

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From time to time, the Daily Business News or MHLivingNews.com discovers or is provided as a tip a column that is re-shared to our readers at length.  That’s the case this morning, with a post about manufactured homes written by talk radio host, Tom Egelhoff.

 

Before sharing Egelhoff’s observations about a hot topic in his part of the country – and the nation at large – some background on him and his career are in order.

KMMS AM 1450 Bozeman says about Egelhoff, “…Has Been The Host Of “Open For Business,” A Business And Consumer Talk Show On KMMS Since 2004. I’m The Author Of “How To Market, Advertise And Promote Your Business Or Service In Your Own Backyard” (Wiley), And “The Small Town Advertising Handbook: How To Say More And Spend Less,” And “How To Market, Advertise And Promote Your Business Or Service In A Small Town.”

Egelhoff’s books are used as texts in the University of Alaska and Missouri State University.  He’s been a guest on MSNBC’s “Your Money.” He’s also been featured in Costco’s Connection Magazine, Target Market Magazine, Emerging Business, and Business Adviser.

We don’t want to do the SIC (typo or terminological error found in the original) during our extended quotes from his article, so we’ll politely note that what Egelhoff calls a “mobile home” in a “trailer park,” he himself clarifies by saying is in a manufactured home community.

A few thoughts will follow his column. The extended quote in brown text below, with only his closing call for comments omitted.

TomEgelhoffLeadingAuthorityUSDoingBusinessinSmallTownsEntrepenurMagazineRadioManufacturedHousingIndustryDailyBusinessNewsMHProNews

The original column is found at this link, here. Enjoy.

MOBILE HOMES: BOZEMAN’S AFFORDABLE HOUSING ANSWER

A small trailer park (sorry, manufactured home park) located on North Willson in Bozeman is in the cross hairs of development plans.

Kick out the MH’s and build multiple three-story duplexes in their place. Affordable housing gone. Welcome to another high rent district on the North Side.

My Affordable Housing

About ten years ago my wife and I disposed of our Bozeman home and moved into one of the Mobile Home Parks in Bozeman.

Why on earth would we do something so stupid? All that equity gone, losing an appreciating asset to live in a depreciating asset. Why?

Plus, you don’t own the land. Why do such a thing?

Consider this, as I did. The fine folks on South Willson don’t own their land either. They pay, as I do, lot rent in the form of property taxes. It’s semantics.

Don’t pay your property tax and guess what — you’re homeless.

My Affordable Housing Retirement Plan

Since I realized too late that retirement was closer then further I had to make serious plans for our financial future.

One of those plans was to dump a $1,500 a month mortgage payment for a $400 lot rent payment on something I owned outright.

That freed up $1,100 a month to invest in an interest bearing financial vehicle rather than pay it to a bank and hope my home might appreciate as real estate usually does.

However, in Bozeman I found that Mobile Homes also appreciate in this market.

In hindsight my decision to downsize our living quarters and upsize my investments has paid off handsomely in spite of the Great Recession of 2009.

Some Final Thoughts

For some people there might be a negative stigma attached to living in a mobile home. I really don’t care considering that I’m able to do most of the things my wife and I want to do without the worry of the monetary consequences. It’s a good feeling to have.

Our home appreciates as does our investment portfolio. I live in affordable housing. So do the folks on North Willson.

If the city commission was true to its word it would deny the raising of that park. Destruction of affordable housing to make way for unaffordable housing makes little sense.

Just because it’s on wheels doesn’t make it bad.”  

end of extended quote

He didn’t use the graphic below, but we have a strong hunch that he’d get the quote, and enjoy the collage of modern manufactured homes too.

MostMenAppearnNeverConsideredWhatHouseIsNeedlesslyPoorAllTheirLivesHenryDavidThoreauManufacturedHomeLivingNews

Terminology matters, as we’ve said countless times.

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Learn more, at this link here.

That noted, and not yet having spoken with Mr. Egelhoff, he may be using that lingo for specific tactical reasons – such as to connect with his target audience. The Daily Business News would note that there’s another way to accomplish that, but he’s a talk radio personality, not a manufactured home (MH) industry spokesperson.

At least. he’s not an MH spokesperson yet…

But in short order, Tom Egelhoff made the following points, that dovetail with topics we’ve covered for years.

  • Egelhoff’s brilliantly blunts the sting and stigma unjustly attached to manufactured home living.
  • He explains how manufactured homes can appreciate, as well as depreciate, part of what causes that are the same factors found in conventional housing.
  • He walks readers through the logic of investing the difference in cost between the affordable manufactured home and the higher cost conventional house, a point that Florida Atlantic University researcher and real estate economist, Ken Johnson has made (see that in the related report, linked further below).
  • He makes the pithy case for land-lease living too, and
  • Manufactured homes as the solution for affordable housing hiding in plain sight.

We plan to reach out to Mr. Egelhoff.  Should we connect, MHProNews will bring you more from this gentleman. Stay tuned. ## (News, analysis, and commentary.)

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Related Reports:

“The Solution to the Affordable Housing Crisis is Hiding in Plain Sight”

 

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Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.