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Legacy Housing IPO (LEGH) Quiet Period Set to Expire, SA’s Don Dion

January 4th, 2019 Comments off

 

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Don Dion on Seeking Alpha provided an executive summary goes like this.

 

LEGH’s quiet period is set to expire on Jan. 8, 2019.

Our research has demonstrated that prices enjoy a temporary increase around the expiration of quiet periods.

Risk-tolerant investors should consider buying shares ahead of LEGH’s quiet period expiration,” said Dion on SA.

 

Dion provides a disclaimer, which read as follows:

Disclosure: I am/we are long LEGH. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.” Dion also says of himself, “Long/short equity, special situations, momentum, event-driven.”

By contrast, MHProNews has done business with Legacy, as well as some of those who sell Legacy products, but only on a marketing basis. That said, the Daily Business News on MHProNews wasn’t asked or commissioned to do this review. We curate and compose articles on subjects that our management deems relevant to our industry.  Our timing and curation are solely ours. Legacy will be as surprised as you are that this our next report.

 

Why Legacy and Why Now?

Legacy, as Dion noted, “manufactures, sells, finances, and distributes tiny homes and manufactured houses through a network of [retail] stores throughout the U.S. It is the fourth largest company in the U.S. that produces manufactured homes…”

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From Legacy Housing (LEGH) S1. See full S1 as a download, linked here.

 

That’s later statement by Dion is not quiet accurate, as LEGH have no known presence in the West, Alaska, Hawaii or other U.S. locations. Legacy is focused more on the South Central, South Eastern and Midwestern states, with their website having the full details.

While the HUD Code manufactured home industry’s latest production report indicates that manufactured housing took a dip in November, Legacy reported as part of their IPO filing that they have their largest backlogs in their firm’s history.

The purpose of the LEGH IPO was to raise capital for more company-owned distribution. Meaning, more vertically integrated retail centers.

That’s something that other producers of HUD Code manufactured homes, modular housing, or ‘tiny’ park model style homes are also doing or considering.

 

 

As one of the sources in the Going Vertical article linked form the text/image box above has told MHProNews, not a day goes by that they don’t consider going vertical themselves.

Legacy isn’t just considering it. They are taking action. That’s what co-founders and co-presidents of Legacy Ken E. Shipley and Curt D. Hodgson are known for doing. Acting, not just talking.

 

CurtisHodgsonKennyEShipleyLegacyHousingCorpCoFoundersLEGHIPOMHProNews

SA’s Dion correctly notes they are the number four producer of HUD Code manufactured homes, per the LEGH IPO data, adding:

The homes range in price from $22,000 to $95,000 and in size from 390 square feet to 2,667 square feet. Legacy Housing reports that it sold 3,274 sections in 2017 and 3,045 sections during the first nine months of 2018.”

 

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Legacy clearly believes in the future of the business, because they are raising capital to expand their retail base.

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A report last night, linked here, reveals that even with much higher pricing, conventional housing didn’t dip as HUD Code manufactured homes did. Again, Legacy and others are bucking the trend, which means others in MHVille and/or investors can too.

 

That’s the kind of growth the industry at large should be achieving. That’s one of the reasons we selected this topic. Investors are among the readers here, because as Evergreen’s —— said on Forbes recently, there is a serious lack of accurate information available about manufactured housing.  Thank you so much, Manufactured Housing Institute, which claims to represent all aspects of factory built housing. Seriously?

Yeah…right. Here is now a quiet period is defined.

 

Dion said that “Legacy Housing priced at $12 after setting a price range of $10.75 to $12.75. During its market debut on Dec. 14, the company’s stock closed at $12.10. LEGH reached a high of $12.5 briefly on Dec. 17 before falling back to close at $12.20 that day,” which may be accurate, but the stock has been under $12 during the broader market’s recent slide.

 

Here above are the closing numbers for last night, from our evening market report on a basket of manufactured home industry-connected tracked industry stocks that are publicly traded.

Among those every-business-evening tracked manufactured home connected stocks is Third Ave Value Fund.  Third Ave, in the later part of 2018, reportedly shed all of their shares of Cavco Industries. That occurred shortly before a Cavco insider told MHProNews about the Joe Stegmayer connected “Debacle.” Cavco has been trading at less than half of their prior high for the last 12 months.  While the two operations are quite different, it is an interesting data-point.

 

 

More on Third Avenue and Cavco are found at the linked text/image box below.  Hint, the SEC being part of the federal partial shut down may be a breather for them, but there are several shareholder plaintiffs attorneys circling around CVCO.

 

Hedge Fund’s Cavco Move, and More from Inside MHVille

 

You can see the rest of Dion’s 2 pages of commentary are this link here.  As noted above, some of his insights are fine, others may need some factual tweaks.  So caveat emptor.

 

 

Take Aways?

The points or take-aways of this report are several. Let’s just look at a few.

  • The industry in general’s slow down is inexcusable, in as much as there is an affordable housing crisis, and HUD Code manufactured homes are the most affordable type of permanent housing in America.
  • Legacy is bucking-the-trend. While some producers, or MHI mouth pieces – and those two are not the same sets of people – have given us their reasons for the downturn, it’s arguably excuses or a cop out. Others, not just Legacy, are growing in their local markets. If others can, then logically others who do things properly should be able to do so too.
  • The Manufactured Housing Association for Regulatory Reform (MHARR) about 14 months ago published a formal report calling for a new post-production trade organization. They did a detailed review as to why they made that recommendation to the industry-at-large.
  • Indeed, since then a new communities trade group has launched. The jury’s hasn’t yet convened, much less ruled on that trade association. Some think that just because it isn’t MHI, that alone is enough. NMHCO has hired Tom Heinemann as a lobbyist.  formerly with HUD, MHI, and who consulted with a GSE. Will those be good credentials? Or will they prove to be problematic? MHProNews will observe, and keep you posted. The proof is always beyond the words, in the doing.

 

MHARR Releases Study Recommending Independent Collective Representation for Post-Production Sector

 

 

 

 

 

Profitable, Ethical Solutions

The solution to the affordable housing crisis is hiding in plain sight. We’ve said that for years, and others in media are picking that theme up. But it can’t be a few times a year message. It’s one that must be repeated often in local markets, like yours.

Sunshine Homes proved they could buck the trends, Legacy Housing are doing the same – each with entirely different product lines. You are either defining yourself in your market, or something else is going to do it for you. In the later case, that may be to the detriment of your interests. “We Provide, You Decide.” © ## (News , analysis, and commentary.)

 

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Bridging Gap$, Affordable Housing Solution Yields Higher Pay, More Wealth, But Corrupt, Rigged Billionaire’s Moat is Barrier

 

 

 

 

 

 

 

Equity LifeStyle, Sun Communities, Lead REIT Recovery in Real Estate Review

October 18th, 2016 Comments off
equity-lifestyle-properties-collage-credit=els-posted-daily-business-news-mhpronews-

Collage of ELS, photos, symbols and logo from an annual report.

Hoya Capital Real Estate published its real estate weekly review via Seeking Alpha on October 15th, which showed a recovery for Real Estate Investment Trusts (REITs), led by Equity LifeStyle Properties (ELS) and Sun Communities, Inc. (SUI).

After what Hoya called the “worst week in several years,” the REIT sector saw a modest increase of 1.5% overall, but the manufactured housing segment led by Equity Lifestyle and Sun Communities was up over 4%.

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Credit: Seeking Alpha.

According to the report, real estate economic data was mixed on the week. Key themes include continued strength in the jobs market, mixed results in retail sales, consumer confidence remaining relatively strong and producer prices ticking slightly higher.

Mortgage rates remain near all-time lows, and the overall mortgage market appears healthy.

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Sun logo and photo credits, Sun Communities, used here – as are all images – under Fair Use guidelines.

Hoya anticipated that the REIT sector will average 7.5% growth in free cash flows (FCF), and they are looking for signs of oversupply in the nonresidential space, which is generally more opaque and difficult to track than the residential sector.

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Credit: Bloomberg.

ELS is due to report earnings today (October 17th.). The Daily Business News has covered ELS extensively here and here. Additionally, our exclusive report on Sam Zell’s views of the MHC industry are linked here.

Sun Communities was recently covered here.

Sun Communities and Equity LifeStyle Properties are two of the industry stocks monitored each business day on the MH Industry’s leading professional news resource, the Daily Business News, on MHProNews.  For the most recent closing numbers on all MH industry-connected tracked stocks, please click here. ##

Editor’s Note – Other Sun Communities – recent reports – as downloadable resources:

(Image credits are as shown above.)

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RC Williams, for Daily Business News, MHProNews.

Submitted by RC Williams to the Daily Business News for MHProNews.

Management Group Increases Holdings in Equity LifeStyle Properties (ELS)

August 10th, 2016 Comments off

EquityLifeStyleProperties-ELSlogo-creditELS-postedDailyBusinessNews-MHProNews-Schroder Investment Management Group acquired an additional $2,017,000 worth of Equity LifeStyle Properties (ELS) shares for the quarter ending July 30th, 2016. Finance Daily tells MHProNews that the purchase results in a 2.2% increase over its previous holdings in the REIT (NYSE: ELS) bringing total investment figures up to $15,875,000.

Previous stock ratings on ELS were mixed between the Citigroup July7 rating of “Neutral” and Equity analyst BB&T Capital’s rating of “Hold” with projected price targets ranging from $55.00 to $60.00.

Affects of the purchase led to ELS stock edging upwards 0.32% allowing its climb over the 50-day moving average and the company to announce a dividend payout $0.425 per share for the quarter – equivalent to $1.70 for the year.

In addition EPS figures are projected to be $3.30 for the current year – a $1.45 increase from the company’s last earnings report.

The Daily Business News tracks ELS and other MH stocks, and notes an up trending $80.84 close yesterday with a P/E ratio of 43.61. As MHProNews readers know, the manufactured home community sector is a hot ticket for investors, ELS is one of the largest manufactured home community operators, is a publicly traded REIT, and was the recent subject of an analysis by SeekingAlpha of MHC REITs, see Matthew Silver’s report linked here. ##

(Image credit, ELS logo.)

FrankGriffinDailyBusinessNewDBNwriterMHProNewsManufacturedHousingIndustryNews75x75

Frank Griffin, Daily Business News, MHProNews.

Submitted by Frank Griffin to Daily Business News, MHProNews.com.

UMH Properties Q2 Conference Call Reveals a Winning Strategy in Manufactured Home Communities sector

August 9th, 2016 Comments off
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UMH Sales Center, Belle Vernon, PA.

MHProNews was privy to the August 5th conference call conducted by UMH Properties, Inc. Participants included corporate management, members from UMH’s Board, as well as analysts, advisors and investors familiar with the community and retail segments of the MH Industry.

Nelli Madden, Director of Investor Relations hosted the call, as key figures presented their findings.

The second-quarter earnings ending June 30, 2016 were presented as a series of positive outcomes and with an optimistic outlook for the rest of the year.  This stands in contrast to some outside MH analysts, who at times have questioned UMH Properties’ business model.

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Part of UMH Q2 report, for full report download, click the image above.

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Nelli Madden, UMH, Director of Investor Relations. Photo credit, LinkedIn.

Several key factors were credited for the firm’s current rally, which they report will also act as a base for the sustainable growth projections into the future. Readers should consider these within SEC guidelines.

UMHPropertiesPart22016QSECfilingsReport-postedDailyBusinessNews-first6months-MHProNews

Part of UMH Q2 report, for full report download, click the image above.

The general performance of UMH’s Communities, specifically their rental home program, was a catalyst for their progressive momentum. The occupancy rate of UMH’s rental portfolio rose 150 base points and the company’s goal for 2016 of delivering 800 additional rental houses is well on its way.

collage2-ribbon-cutting-port-royal-umh-regional-retail-sales-center-belle-vernon-pa-manufacturedhomelivingnews-com (1)

Photo collage by MHLivingNews.com, to see the related report to the collage above, click on the image above.

This second quarter follows a positive first quarter and will, in turn, set the stage for a year which Chairman, Eugene Landy described by saying:

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Still from a video interview conducted by MHProNews – Inside MH series – to see the video interview, click here or the photo above.

We are very pleased with how 2016 is progressing and believe we are well-positioned for an excellent year. “

President and CEO Samuel Landy recognized challenges within the industry – such as cap rate compression caused in part by increased competition for properties, community improvement expenses and maintenance of rental units – but continued to outline UMH’s fruitful strategy of diversification. CEO Landy said,

We are pleased to announce another strong quarter of operating results. During the quarter, we:

  • Increased Core FFO per diluted share to $0.18, representing a 50 percent increase over the prior year period;
  • Increased Normalized FFO per diluted share to $0.16, representing a 33.3 percent increase over the prior year period;
  • Increased Rental and Related Income by 25 percent over the prior year period;
  • Increased Community Net Operating Income (“NOI”) by 33 percent over the prior year period;
  • Increased Same Property Occupancy by 180 basis points over the prior year period, from 82.4 percent to 84.2 percent;
  • Increased Same Property NOI by 21.4 percent over the prior year period;
  • Decreased our Operating Expense Ratio by 320 basis points over the prior year period from 51 percent to 47.8 percent;
  • Increased homes sales by 72.4 percent over the prior year period from $1.6 million to $2.8 million, and increased the number of homes sold by 53 percent, from 32 homes sold to 49 homes sold;
  • Increased our rental home portfolio by 228 homes, representing an increase of 5.8 percent from the first quarter of 2016 and a 42 percent increase over the prior year period to approximately 4,100 total rental homes;
  • Increased rental home occupancy by 150 basis points from 92.9 percent at year end 2015, to 94.4 percent at quarter end;
  • Increased the unrealized gain on our REIT securities investments to $16.4 million at quarter end, in addition to recognizing realized gains of $782,000; and
  • Issued 2,000,000 shares of our 8 percent Series B Cumulative Redeemable Preferred Stock in a registered direct placement at a purchase price of $25.50 per share, raising approximately $49.1 million in net proceeds.”

 

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Part of UMH Q2 report, for full report download, click the image above.

A manager at UMH told MHProNews off the record that, Hearing the meeting this morning really made me smile and get even more excited for UMH.”

The video interview above with homeowners will showcase
for industry newcomers the appeal to home seekers of today’s
manufactured homes and the MH Community lifestyle.

Portfolio sectors including Core FFO and their securities portfolio provided leverage and hedging potential to edge the company forward.

Key inquiries posed by attending analysts were centered on spending plans in terms of community acquisitions and their proposed closing dates.

Management proceeded to justify their acquisition and investment strategy by highlighting the growth and income generating potential of the rental sector when in line with targeted market cap rates.

Notes mentioned included the much agreed upon necessity of eliminating regulatory obstacles that hinder the growth of the industry.  Landy has been an outspoken champion of reforming CFPB’s implementation of Dodd-Frank regulations, as Inside MH  previously reported in a video linked here.

It was an engaging conference call that highlighted not only UMH’s plan and optimism – but also for the manufactured home communities sector, and the MH Industry as a whole.

Company Market Summary as of Aug 8, 2016

UMHProperteisIncAugust82016StockSummary-postedDailyBusinessNews-MHProNews

Click the image above to see the August 8th Manufactured Housing industry related stock market report.

Insights and comments on a recent report by Seeking Alpha that include UMH are linked here.

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Tim Williams, OMHA Executive Director.

Commenting on Seeking Alpha’s report, Tim Williams – Executive Director for the Ohio Manufactured Homes Association (OMHA) — stated in part that,

SUN and UMH are very active in Ohio. UMH has made a significant number of park acquisitions in Ohio these last several years.

With the overall home ownership rate at the lowest level in decades and the difficult lending environment, MH REITS are uniquely positioned to prosper along with MH in the coming years. Our affordability, whether owning an MH or renting, is unmatched and will continue to increasingly fill this gap in declining site-built home ownership rates.”

UMH Properties is one of several publicly traded manufactured housing-connected stocks tracked by the Daily Business News market report; the most recent one is linked here.

The entire 2016 Q2 conference call transcript can be downloaded, here. As regular MHProNews readers know, UMH has doubled their footprint in the MHC sector in roughly five years.##

(Sources – PRNewswire, UMH Second Quarter Report and MHProNews.)

FrankGriffinDailyBusinessNewDBNwriterMHProNewsManufacturedHousingIndustryNews75x75

Frank Griffin, Daily Business News, MHProNews.

Article submitted by Frank Griffin, to the Daily Business News, MHProNews.com.

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 Properties Reports Sustained Growth for Q4 2014

March 13th, 2015 Comments off

umh_mfg_home__cedit_umhIn the company’s year end and Q4 conference call, UMH’s president and CEO Samuel Landy says the company acquired 14 manufactured home communities (MHC) comprised of 1,600 developed homesites for $42.6 million, representing an increase in home sites of 12 percent. In addition, UMH acquired an MHC in Erie, Pennsylvania with 141 homesites for $3.8 million since Jan. 1.

During Q2 of this year the company expects to close on three more PA MHCs with 482 developed homesites for $9.1 million, and is negotiations for additional properties. The company expects to spend another $100 million for communities during the next few years, as seekingalpha tells MHProNews.

Overall occupancy rose to 82.3 percent from 81.5 percent at year-end 2013, and 1,500 rental units were added over the past two years for total rental units of 2,600 at the end of 2014. Occupied rental homes now account for 19 percent of total homesites. As the result of tight credit standards and limited wage growth, rental units are in higher demand.

For Q4 2014, core funds from operations (FFO) equaled $3.8 million, an increase of 220 percent over the $1.1 million for Q4 2013. Rental income grew 20 percent from $14.1 million to $16.9 million for Q4 over the same quarter of 2013.

UMH has also opened four MH sales centers which generated a loss of $1.9 million for 2014, an increase from the $640,000 loss of 2013, but in the long term UMH expects as sales increase this figure will turn around.

The company has $10.2 million available on its line of credit and owns $63.6 million in marketable REIT securities. Taking advantage of the low interest rates, UMH will refinance a portfolio of their MHCs, raising $55million to $60 million which will provide $40 million to $45 million in available cash.

Chairman of the Board of UMH Eugene Landy says the company is taking advantage of the growing housing market, especially MH rentals, in the Utica and Marcellus gas and oil exploration markets in Pennsylvania and Ohio, and has invested in MHCs in that region. ##

(Photo credit: UMH Properties)

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

 

Alpha barking up the wrong tree? Decline of MHCs in PA and OH Doubtful

December 22nd, 2014 2 comments

pine-manor-carlisle-pa-umh-properties-manufactured-home-community-posted-mhlivingnews-com-2Investors know that diversification is a good strategy in business. The professionals at Seeking Alpha know this too, but apparently overlooked some factors in a recent report by them on UMH Properties (NYSE: UMH).

Alpha  writer Reuben Gregg Brewer seems to think thatWith oil prices falling rapidly, it’s possible that this exposure could turn into a liability.” Really?

As MH Industry professionals know, UMH Properties, Inc., (UMH), is a real estate investment trust (REIT) that owns and operates manufactured home communities in seven states throughout the northeast. Those states include New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, and Michigan. This goes well beyond properties which Brewer says are “...located near two large shale gas regions.”

UMH has been in business since 1968. It has operated as a public company since 1985 and owns a portfolio of some 88 manufactured home communities with approximately 15,000 home sites. Their President and CEO, Sam Landy, was profiled by MHProNews in an exclusive interview, linked here.  They have a seasoned management team at the corporate and property levels.

Alpha Missing the Mark?

First, Alpha’s analysis missed the fact that UMH provides quality affordable homes, as opposed to higher priced housing that might have greater swings in demand. The obvious advantage of being on the affordable end of housing, is there is a routine and strong demand for that and experts say that demand will only grow.

Brewer is correct in saying that UMH Properties has multiple land lease communities located near gas “fracking” exploration areas in Ohio and Pennsylvania. But those communities did well before fracking and should do well 20 years from now if the boom plays out.

So the surge in drilling that has attracted many to work in these shale projects is a bonus, not a liability for UMH.

Further, there has been no evidence of what Brewer suggests happening. Producers don’t seem to be cutting back on drilling. Even if there were any significant loss in employment, that doesn’t mean people will be leaving the manufactured homes they are living in. After all, in many cases, the home will represent one of the best housing values in a given market.

As the Daily Business News noted in a recent report on the impact of sliding Oil and Gas on MH, the Wall Street Journal said what others suggested too: “Oil prices would need to fall at least another $20 a barrel to choke off the U.S. energy boom.

According to Shale Directories, 99 permits were issued in Pennsylvania between December 1 and December 11, and Ohio had 19 permits last week.They also say that American Energy Utica is ramping up for heavy drilling in January. So tales of gloom by Alpha  seem to be premature at best.

In addition, Mr. Brewer’s concept of living in a manufactured home community is either condescending or quite amusing. He feels that MH is limited toretirement communities filled with old people, and the second is a trailer park filled with, well, scary people.” He refers to this as “cheap housing.”  Perhaps Brewer has never been to the community shown in the photo?

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Clearly Brewer is unaware of places in NY’s Long Island or Malibu, CA where million dollar manufactured homes are bought and sold, and millionaires call the homestrendy,” as reported by CBS News.

Brewer tried to bolster his talking points about UMH with the graphic shown at left. However, many of those communities are not close to areas where shale activity are taking place.

Diversity of MH Community types

As serious MHC investors, professionals and enthusiasts know, there is a broad scale of choices in MH Communities. Some offer more expensive homes and amenities, others are spartan and focused on the ultimate in affordable homes in a given market.

So Brewer is simply mistaken by asserting that MH living is limited to those who have retired or assorted “scary” people. In fact, Lisa Tyler an MBA with a pending doctoral thesis in MH, Foremost Insurance or others have pointed out, people of all ages, incomes, and family structures live in manufactured homes.

In some MH Communities, there are more economical new homes priced from $30,000 to $70,000. In more upscale communities, you may find some homes that range from the $70,000 up to 6 or 7 figures.

Mr. Brewer is right about one thing – more people are realizing the economy of living in a manufactured home. To be balanced, Alpha  see report link here.

Related article: With Oil Prices Still Falling, what’s the outlook and Impact on Manufactured Housing?

(Photo Credit: PMHA and UMH.)

sandra-lane-daily-business-news-mhpronews-com-75x75-Article submitted by Sandra Lane to – Daily Business News – MHProNews. 

Alpha Touts Manufactured Home Communities for Healthy Boomers are Becoming Hot Investments

December 19th, 2014 Comments off

sun-communities=credit-posted-daily-business-news-mhpronews-com-Think that investing in a “senior” community means assisted living or nursing care? Think again. Many of today’s seniors are fit and healthy and living an active lifestyle. Many live in country-club-like manufactured home communities (MHCs) that feature pools, fitness facilities, game rooms, shuffle board, and assorted other amenities that appeal to fit and healthy seniors.

Who is singing such praises about investing in manufactured home communities?

Seeking Alpha (SA), a website focused on stock market news and financial analysis, extolls the wisdom in investing in Real Estate Investment Trusts (REITs) that cater to active seniors. SA profiled Sun Communities, Inc. (NYSE:SUI).

Besides operating all age communities, Sun has tapped into the expanding group of healthy and active seniors.

Their wisdom is confirmed by several sources including Care REIT (NYSE:HCN), which says that ”the number of people aged 75 and up is set to increase five times faster than the overall population.” That means that between 2014 and 2034 the number of people older than 75 will nearly double, going from 28 million to 52 million.

Other studies show that 85 percent of the 75 to 84 group doesn’t need help, and that 60 percent of the 85+ group doesn’t need a lot of help. It seems that REITs that provide housing to healthy boomers are set to see even more residents.

Obviously benefiting from this information, Sun Communities is taking steps to increase its holdings. Currently, this organization is involved in a $1.32 billion acquisition that will increase their holdings to 245 communities with approximately 90,000 home sites. More than half of these are located in Florida and Michigan. The deal, says SA,expected to increase funds from operations between 5% and 8% next year once the multi-step deal is fully completed.”

Alpha didn’t mention Sun’s recent $258 million deal for 7 MHCs in the Orlando FL market, but MHProfessionals focused on the land lease community sector didn’t miss that or its implication.

Such interest in MHCs is good news for the manufactured housing industry.  Older people, often being careful with their assets, often have the money to purchase a nice manufactured home in one of these choice communities. This appears to be a segment of the population on which manufactured housing professionals can cultivate and depend upon. ##

Related Stories:

(Photo Credit: Sun Communities)

sandra-lane-daily-business-news-mhpronews-com-75x75-Article submitted by Sandra Lane to – Daily Business News – MHProNews.

Alpha questions Drew, but Citigroup rates stock a Buy

November 22nd, 2014 Comments off

drew+new-york-stock-exchange-nyse-credit=andrew crump-flickrcreativecommons-posted-daily-business-news-mhpronews-com475x356-Seeking Alpha   claims millions of followers in the investment world, and they questioned the value of Drew Industries (NYSE:DW) in a report Thursday. By contrast, Citigroup issued an investors note, increased the target price from $51 to $57 a share and rates Drew a Buy.

Drew CFO Joseph S. Giordano III sold 2,000 shares of DW stock on Monday, November 10th, per SEC filings. The stock was sold at an average price of $47.50, for a total transaction of $95,000.00.

Mideast Times  said, “Drew Industries (NYSE:DW) traded up 1.63% during mid-day trading on Wednesday, hitting $47.90. 9,045 shares of the company’s stock traded hands. Drew Industries has a one year low of $40.38 and a one year high of $55.35. The stock has a 50-day moving average of $45.3 and a 200-day moving average of $46.33. The company has a market cap of $1.133 billion and a P/E ratio of 18.61.

Drew is one of the stocks tracked by the Daily Business News market report. On Friday, Drew Industries, Inc. (NYSE:DW) 47.00 -0.13 (-0.28%) – for the complete Friday’s report on factory-built home connected stocks, click here. ##

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Housing Market Rebounding this Year?

June 25th, 2012 Comments off

While some analysts predict the housing market will not turn around until later next year, Seeking Alpha‘s Mike Kapsch lists several reasons it may return yet this year: More building permits were applied for in May than in the past 3 1/2 years, and the U.S. Department of Commerce upwardly revised April’s housing starts from 717,000 to 744,000; new home inventories are at record lows, which eases the pressure on home prices to continue falling, and led to average home prices actually rising slightly the last two months; the unemployment rate has dropped from 9.1% last August to 8.2% as employers have added one million new jobs this year; and mortgage rates are at their lowest point since long-term mortgages were first offered in the 1950’s, making it cheaper to buy than to rent in some areas. MHProNews has learned that in an election year, if the incumbent administration is seeking another term, job creation often happens, which is key to a stronger economy. Stay tuned.

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