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Posts Tagged ‘return on investment’

Equity LifeStyle Properties, Inc. Yields ROI of 8.40 percent

August 2nd, 2016 Comments off

els california hawaiian, san jose calif  mhvillage  credit postedDailyBusinessNewsMHProNewsThe stock of manufactured home community owner Equity LifeStyle Properties, Inc. (NYSE:ELS) has been on an upward tear recently, generating strong attention from investors and analysts as it marks a return on investment (ROI) of 8.40 percent, reaching $82.88 on a recent bid. (ROI is determined by dividing the return of the investment by the cost of the investment.)

This year alone the stock has gained 24.81 percent, 1.74 percent of it the past week, and is up 46.63 percent for the past year, according to presstelegraph. On Tue., March 31, 2015 ELS closed at $54.95 as MHProNews reported in the daily stock report.

ELS’ earnings per share (EPS) so far this year is 8.90 percent with a trailing 12-month EPS of 1.85 percent. On a consensus basis, analysts are estimating growth for next year to be 10.34 percent.

ELS is the largest owner of manufactured home (MH) and recreational vehicle (RV) communities in North America with 390 communities in 32 states and British Columbia, Canada comprised of 145,804 developed sites. ##

(Photo credit:MHVillage-ELS’ California Hawaiian MHC, San Jose, CA)

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

Foreclosures no Longer the Hot Ticket to Income

January 2nd, 2014 Comments off

Would-be investors buying foreclosed homes at auction and renting them are finding the trough is drying up, as auction prices have risen faster than rents, according to Core Logic, resulting in returns on investment (ROI) dropping. “It’s gotten so competitive that discounts at foreclosure are not where they were,” said Daren Blomquist, spokesman for RealtyTrac. “It’s harder for third party purchasers at auction to make a profit.” ROI fell in eight of the top ten best buy-and-rent cities, including Tampa, which was the top city in 2012, and the same for Chicago in 2013. According to CNNMoney.com, of the top ten only Houston and Charlotte, NC gained in average returns. Nationally, MHProNews has learned, homes sold in foreclosure auctions now only cost four percent less than average sales, compared to the 16 percent differential in 2012. Additionally, while home prices increased almost 14 percent through October, 2013, rents for the first nine months rose only 2.2 percent, compared to the same period of 2012.

(Photo credit: Wikipedia)

Yield on Investment in Single-family Homes Unknown

October 14th, 2013 Comments off

Single-family home real estate investment trusts (REITs) are a new player in the real estate market, with the outcome yet to be realized. One of them, Silver Bay Realty Trust says there are 41 million rental units in the U. S., equal to 30 percent of the housing market. Roughly 25 million are apartment units, nearly 14 million are single-family home rentals, and another two million are manufactured homes. The single-family homes, often bought out of foreclosure, generally need repairs, which will forestall return on the investment, especially when combined with property taxes. If renovations cost around $10,000 and the unit rents for $1,150 a month, the repairs and taxes will eat up the first years’ rent, according to dailyfinance.com. At the low end, it is estimated nine percent of revenues will go towards costs, and that number will likely be higher in some cases. Comparatively, manufactured home community owner Sun Communities, Inc. (SUI) estimates it spends only 3.5 percent of revenues for ongoing maintenance because homeowners are responsible for the up keep of their homes. While apartment buildings may need an entire roof, single-family home REIT properties are generally scattered about and not connected, ruling out the buying of anything in bulk as a means to save money. As MHProNews knows, Sun owns and operates 185 communities with over 67,000 home sites.

(Image credit: housingwire)

High Demand for Manufactured Homes in Manitoba, but limited spaces in MH Communities

August 23rd, 2013 Comments off

credit-cbc-news-Demand for Canada’s version of manufactured housing is rising rapidly in Manitoba, at the very time spaces in provincial land lease communities are scarce. With single family home sales in the region averaging $285,000, a new manufactured home in Manitoba for $115,000 looks very reasonable. So it is no surprise that sales rose 11% in 2012 over 2012, and sales are up some 20% in 2013 over 2012. However, the sad reality of the impact of rent control measures are playing out here in a dramatic fashion. Manufactured home community (MHC) owners are limited in their options for development due to laws that place a 1% annual caps on rate increases. Choking off return on investment options for MHC owners causes some to sell their property for other uses, which then displaces residents who are unable to find a space in another land lease MH Community. One such community is Kingsway Kort in Brandon, where resident Colleen Weisbrodt is one of 140 households forced to move due to the park’s closure. Weisbrodt can’t find a vacancy in another community, which Glendale MHC owner Kenny Choy, explains to CBC News is common. Choy’s community has 230 home sites on 30 acres of land and has been full for 10 years. Current law creates disincentives to develop, in spite of the market demand for affordable manufactured homes. ##

(Video credit: CBC news)

CA MHC Successfully Challenges Rent Control

February 1st, 2012 Comments off

Bill Dahlin of the Hart, King & Coldren law firm in California has notified MHProNews.com of its success in finally achieving a rent increase for Brentwood Mobilehome Park in Chula Vista, CA. The San Diego County Superior Court approved a $78.00 a month permanent rent adjustment which the city’s Rent Review Commission formally adopted. Brentwood first applied for the increase two years ago and has expended considerable resources seeking a reasonable return on investment. An adjustment of $45 a month spread over a three year period had previously been granted, but was challenged in court by Brentwood for being less than 50 percent of what had been requested. Last year Chula Vista amended its rent control ordinance to allow MHC owners to adjust home sites rents to market rate once a resident leaves. Attorney Dahlin notes with a turnover of 8-10 percent a year, community owners should be able to charge rent sufficient to keep pace with inflation, cover costs, and provide a reasonable return on investment.

(Photo credit: Brentwood Mobilehome Park)