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Posts Tagged ‘marcellus shale’

Business Optimism Rises with Trump’s Ascendancy, as Energy Issues take Center Stage

December 13th, 2016 Comments off

President-elect Trump  Daniel Acker/Bloomberg

The National Federation of Independent Businesses’ (NFIB) small business optimism index rose from 94.9 to 98.4 in the wake of president-elect Donald Trump’s victory in the U. S. elections, marking the largest increase since 2009.

Bill Dunkelberg Smallbusinessadvocate

 

This month we bifurcated the data

to measure the results before and after the election,” explained Chief Economist Bill Dunkelberg, noted here. “The November index was basically unchanged from October’s reading up to the point of the election and then rose dramatically after the results of the election were known.”                                                               

The balance of opinion on sales expectations surged by 10 percentage points to +11, while the same gauge when applied to expectations for business to improve shot up from -6 to +38, a huge jump, according to Bloomberg.

Small businesses like unified Republican government,” said Neil Dutta, head of U. S. economics at Renaissance Macro Research LLC. Dutta reported that the NFIB index rose in 2004 after George W. Bush won a second term, but dropped when President Obama was re-elected in 2012.

Dunkelberg also noted that Trump’s plan to cut corporate taxes will benefit domestic firms, especially when coupled with his nomination of Linda McMahon to head the Small Business Administration (SBA) and thereby roll back regulation and attempt to repeal the Affordable Care Act.

Rex Tillerson Newyorker

Meanwhile, as Lifezette informs MHProNews, Trump has fired several shots across the bow indicating that energy will be in the forefront of his administration: His choice of Exxon Mobil CEO Rex Tillerson as his Secretary of State, Oklahoma Attorney General Scott Pruitt to head the Environmental Protection Agency (EPA), and former Governor of Texas Rick Perry to (possibly) head the Department of Energy signals a focus on energy development unlike any recent administration. Tillerson has business interests all across the globe, Pruitt fought Obama’s focus on “green energy” at every turn, and you cannot be governor of Texas without an interest in the West Texas oil deposits as an economic force.

The Impact of Energy Development on Manufactured and Modular Housing

Oil pumps Watford City, ND Tom Haines/theatlantic

As MHProNews has reported here dozens of times, the Marcellus Shale deposits in eastern Ohio and western Pennsylvania, and the Bakken oil fields in North Dakota–in addition to West Texas–have led to an unprecedented surge in demand for affordable housing, modular and manufactured, for the oil field workers and support services. In short, under a Trump administration, Lifezette reports “Energy will be key to America’s economic growth and revival.”

While President Obama and other world leaders have had more of a focus on “clean and green energy,” especially in light of the Paris Agreement, “Trump is signaling a commitment to an economy powered well and cheaply by abundant supplies of oil, gasoline and electricity.”

The Paris agreement, while not having any enforcement mechanism, requires nations to “come together every five years to set more ambitious targets as required by science,” and to “report to each other and the public on how well they are doing to implement their targets.”

New York Times columnist Thomas Friedman notes what might happen if Trump tries to withdraw from the Paris accord. “You mess with this issue, you abandon Paris, you will see a backlash that will make Greenpeace look like a knitting circle,” said Friedman, pointing his finger. “They will go after his golf courses … They are really playing with fire.”

Trump may or may not be able to withdraw from Paris, but he is sure to go after Obama’s Clean Power Plan, perhaps by refusing to defend it in upcoming court battles. Marlo Lewis, senior fellow in energy and environment at the Competitive Enterprise Institute, said, “This regulation was transparently designed to kill the future of [coal plants]. That is the centerpiece of the EPA’s war on coal, or war on affordable energy.” ##

(Photo credits as shown above.)

Article submitted by Matthew J Silver to Daily Business News on MHProNews.

Trump, Kasich, Shale and Manufactured Housing

November 18th, 2015 1 comment

Utica_shale_development_in_the_Appalachian_Basin_wikipedia__creditIn the fifth edition of its shale economic development chart, Bricker and Eckler report a 51 percent increase in total investments since a year ago in Ohio’s oil and gas-related projects, amounting to nearly $33.7 billion. In information provided to MHProNews by Ohio Manufactured Homes Association (OMHA), there has been $5.7 billion in infrastructure investments since the prior report was published in May, 2015.

The evolution of Ohio’s shale boom has moved beyond the rush to lease oil and gas mineral rights into midstream and downstream phases involving the storage, transportation and processing of oil, natural gas and natural gas liquids,” according to shaleohio.

While the report covers development in some 40 (mostly eastern) Ohio counties, the investment has had a significant effect in Mahoning, Stark, Monroe, Trumbull, Columbiana and Belmont Counties, and includes adding oil-and-gas-related degree, research and law programs at several schools. Many of the projects cover multiple counties.

In addition to new motels and hotels, railway expansion projects, infusion of capital into local banks, drilling and pipeline building and support facilities, increased retail operations, and thousands of new jobs, the region has also seen the acquisition and upgrade of manufactured home communities, in particular by UMH Properties, Inc., as reported by MHProNews in several posts. Modular and MH retailers are also benefiting from the increase in employment and subsequent housing demand in the Marcellus Shale boom in western Pennsylvania and New York, as well as West Virginia. However, the Ohio portion is believed to be richer in oil, condensate and natural gas liquids, according to wikipedia.

The development and subsequent investment has also entered into the banter of the presidential debates, with Donald Trump telling Ohio Gov. John Kasich that he got “lucky” with rising employment because of the oil shale boom. Kasich agreed Ohio has benefited from the shale but that the state has a diversified economy.

To see the Bricker and Eckler list of developments of well over 100 projects that are impacting eastern Ohio, please click here. ##

(Map credit: wikipedia commons–oil and gas development in the Appalachian Basin)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

UMH Properties has High Concentration in Energy Development Region

September 12th, 2015 Comments off

umh_mfg_home__cedit_umhAccording to seekingalpha, manufactured home community (MHC) owner UMH Properties, Inc. has a high concentration of its communities in Ohio, New York and Pennsylvania, and 80 percent of them are within the Marcellus and Utica Shale regions where energy companies have stepped up drilling for natural gas. UMH says same store occupancy has risen from 78.3 percent in 2010 to 83.4 percent in Q2, 2015.

As MHProNews reported May 28, 2015, UMH has been on an aggressive acquisition tear, especially in the energy drilling regions, where it has been buying MHCs with low occupancy and in need of updating. While occupancy has been increasing, rentals of the MH now comprise 22 percent of the portfolio.

Energy industry workers go where the work is. Energy development is often a cyclical industry. If a better opportunity presents itself elsewhere, the worker may move on.

However, UMH CEO Samuel Landy is very upbeat: “Shale development is fueling the revitalization of this region. Industrial development in the region is also being driven by pipeline construction to reach end consumers and gas processing plant construction. These multi-billion dollar projects continue to move forward despite the recent drop in oil prices,” said Landy during the Q2 conference call.

As long as the confluence of falling oil prices, environmental concerns about fracking’s possible relationship to groundwater contamination and earthquakes does not interfere with UMH’s expansion, investors should not have to worry.

At last count, UMH owns and operates 92 MHCs comprised of 15,700 developed home sites.  As was noted in the Daily Business News December 22nd 2014 report, part of the beauty of the communities sector and the manufactured housing business in general is precisely that it is the most affordable housing in America.  Thus, the risks are mitigated by a broader appeal and need, beyond just energy sector workers. ##

(Photo credit: UMH Properties, Inc.)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

UMH Continues Expansion Plans

May 28th, 2015 Comments off

umh_mfg_home__cedit_umhMHProNews has learned that UMH Properties, Inc. (NYSE:UMH) has purchased a 158 site manufactured home community (MHC) in northeastern Pennsylvania for $3,517,000. The all-age community is situated on 43 acres in the Marcellus and Utica Shale regions where the demand for housing is being driven by energy exploration workers. Current occupancy is approximately 64 percent, according to prnewswire.

UMH President Samuel A. Landy said, This community has significant upside that we intend to realize through our sales and rental program. UMH continues to execute its growth plan.

As MHProNews reported April 24, 2015, UMH closed on two MHCs with 324 total homesites in western Pennsylvania for $5.3 million. Today’s acquisition boosts the company to 92 communities comprised of 15,700 developed homesites located in Indiana, Michigan, New Jersey, New York, Ohio, Pennsylvania and Tennessee. A publicly traded real estate investment trust (REIT), UMH also owns a portfolio of REIT securities. ##

(Photo credit: UMH Properties, Inc.)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

UMH Posts Gains in Q1 2015

May 8th, 2015 Comments off

umh_properties_creditFor the first quarter of 2015, UMH Properties, Inc. (NYSE:UMH) reports Core Funds from Operations (CFFO) rose from $2,425,000 or $0.11 per diluted share for the 1st quarter of 2014 to $3,159,000 or $0.13 per diluted share for the comparable quarter 2015. Normalized Funds from Operations (Normalized FFO) hit $3,226,000, $0.13 per diluted share for Q1 2015. as compared to $1,916,000 or $0.09 per diluted share for the comparable period of 2014.

Total income for the first quarter of 2015 increased to $18,344,000 compared to $15,849,000 for the same period of 2014. Community net operating income (NOI) rose 28 percent to $8.4 million 2015 over 2014’s $6.6 million.

Overall occupancy rose from 80.8 percent in Q1 2014 to 82.3 percent at the current time. Same story occupancy rose from 81.7 percent to current 83 percent, as prnewswire informs MHProNews.

Samuel A. Landy, President and CEO, further states that during the first quarter of 2015 the company acquired three Pennsylvania manufactured home communities (MHCs) comprised of 465 developed homesites for $9.1 million, and has its sights set on another PA MHC with 158 developed homesites for $3.5 million. He adds, “We are currently in various stages of negotiations for additional community acquisitions.

Noting the company has obtained ten Freddie Mac mortgage loans for $57.7 million, Landy says, “The entrance of Freddie Mac into our sector and the favorable financing terms obtained will allow us to continue to refinance our communities and execute our growth strategy for the long-term benefit of our shareholders.

Drilling in the Marcellus and Utica Shale region has workers streaming to the western Pennsylvania area, an area where UMH is expanding its holdings. ##

(Photo credit: UMH Properties, Inc.)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

UMH Acquires Four Manufactured Home Communities

July 17th, 2014 Comments off

Freehold, New Jersey-based UMH Properties, Inc. has closed on the acquisition of four manufactured home communities (MHCS) in the Pittsburgh area for $12,200,000, according to PRWeb.com. These all-age communities contain a total of 336 developed homesites situated on a total of 239 acres. Average occupancy for these MHCs is 84 percent. President Samuel A. Landy says,“These communities are in areas where we expect economic growth due to Marcellus and Utica Shale related industries,” referring to the oil and gas exploration going on in western Pennsylvania. As MHProNews knows, UMH is a publicly-owned real estate investment trust (REIT) that owns and operates 86 communities with 14,800 developed homesites. ##

(Photo credit: UMH Properties, Inc.)

Manufactured Homes Selling in Eastern Ohio

May 5th, 2014 Comments off

Property transfers from Salem, Ohio reveal a manufactured home with ten acres on Foundry Hill Road was sold by Marcia Griffith to Corey Griffith for $37,747, according to salemnews.net. A manufactured home on a lot on Dunn Road was sold to David and Thelma Gabbert by John Gamble, Jr. for $16,900. Salem is in eastern Ohio just south of Youngstown, near the Utica and Marcellus Shale formation where energy exploration is growing. UMH, Inc. has acquired several manufactured housing communities in the region recently, as MHProNews last reported March 14, 2014. ##

(Photo credit: loopnet.com–Birch Tree Estates)

UMH Acquires Eight Manufactured Home Communities

March 14th, 2014 Comments off

MHProNews.com has learned that UMH Properties, Inc. of Freehold, New Jersey has acquired eight Ohio manufactured home communities (MHCs) comprised of 1,018 homesites with an average 70 percent occupancy rate, for $24,950,000. A public real estate investment trust (REIT), marketwatch.com reports the company owns and operates eighty-two manufactured home communities containing approximately 14,500 developed homesites. Samuel A. Landy, President, stated, “UMH continues to execute our growth strategy. These eight communities are well located and have substantial upside potential. They will benefit from our sales and rental programs. Housing demand in the energy-rich Marcellus and Utica shale regions, where numerous UMH communities are located, is expected to be particularly strong in the years to come.” UMH also owns a portfolio of REIT securities. ##

(Photo credit: UMH Properties, Inc.)

Seller Identified in Manufactured Housing Community Transaction

December 2nd, 2013 Comments off

Updating a story MHProNews posted Nov. 8, 2013, Marcus & Millichap’s Cleveland office represented Melrose MHP LLC in closing the sale of five manufactured housing communities (MHCs) to real estate investment trust (REIT) UMH Properties for $11.8 million. According to rejournals.com, the homesites cost $22,736 per. UMH has been particularly aggressive recently in acquiring communities near the Utica and Marcellus Shale energy drilling region that encompasses eastern Ohio and western Pennsylvania and New York. This addition of four of the communities in Ohio and one in New York to its stable brings UMH’s portfolio to 74 communities comprised of 13,400 developed home sites.

(Photo credit: UMH Properties, Inc.)

Thumbs Up on UMH Properties

November 25th, 2013 Comments off

SeekingAlpha.com reports manufactured housing community (MHC) proprietor UMH Properties owns 74 communities comprised of 13,400 developed home sites with an average occupancy rate of 82 percent. Forty-three of the communities, representing 46 percent of the holdings, are in the Utica and Marcellus Shale acreage that is being developed by energy companies that often utilize factory-built housing. The commentator, Brad Thomas, suggests UMH is a good buy because of its enviable position along the Ohio-Pennsylvania border where the drilling is going on, and is buying it himself, even though he does not like the fact that it maintains a REIT (real estate investment trust) portfolio of $23.2 million, which accounts for 30 percent of its assets. The company also sells and finances MH, as MHProNews has learned. In addition, UMH has a $23.2 million loan portfolio comprised of around 760 homes located throughout 48 communities