Manufactured Housing Properties Inc. Announces Results For The Year Ended December 31, 2018

  • Revenue Increase 190% For The Year Ended December 31, 2018

CHARLOTTE, NC / ACCESSWIRE / April 1, 2019 / Manufactured Housing Properties Inc. (OTC PINK: MHPC), which acquires, owns, and operates manufactured housing communities; today announced operating results for the year ended December 31, 2018.

Raymond M. Gee, Chairman and CEO of Manufactured Housing Properties Inc. commented, “Our 2018 year end results show solid execution of our business plan of improving operational efficiencies of our manufactured housing properties, as we increased net operating income on our existing portfolio to $1,323,931 from $418,458 for the years ended 2018 and 2017, respectively. We remain focused on creating long-term value for our shareholders by maximizing returns through operational improvement, and growing our portfolio through new acquisitions.”

We continue to record year over year revenue growth from our focused strategy of acquiring value add communities that are well-located and improving operations by improving efficiency. We remain focused on creating long-term value for our shareholders by maximizing returns through operational efficiencies, and securing additional capital to grow our portfolio value.”

The Company’s net revenues increased 190% to $2,000,312 for the year ended December 31, 2018, as compared to net revenues of $689,788 for the same period in 2017. The increase in revenues was primarily due to the acquisitions of five manufactured housing communities subsequent to the third quarter of 2017, and an increase in our portfolio’s occupancy and rental rates.

Community operating expenses improved to 34% of revenues to $676,381, for the year ended December 31, 2018 compared to 39% of revenues totaling $271,330 over the same period in 2017. The additional community operating expenses year over year was primarily due to the acquisitions of five manufactured housing communities subsequent to the third quarter of 2017.

Corporate General and administrative expenses of $1,564,817 for the year ended December 31, 2018, increased by $1,217,384 over the year ended December 31, 2017. Corporate General and administrative expenses are mainly comprised of Payroll expenses of $588,646, Stock based compensation expense of $171,569, Audit and Legal fees of $193,957, and Depreciation and Amortization of $534,290. This increase was primarily related to an increase of $371,611 in Depreciation and Amortization expenses, and an increase of $845,773 in Corporate Payroll and Overhead expenses. Corporate Payroll and Overhead increased as the company hired additional employees to support the five acquisitions subsequent to the third quarter of 2017 and to support growth and future acquisitions. Overhead expenses mainly increased during the year ended December 31, 2018 due to additional legal and audit cost related to the Company’s reverse merger transaction and acquisitions, and stock-based compensation issued to consultant.

Interest expense of $1,001,455 for the year ended December 31, 2018, increased by $749,657 over interest expense of $251,798 for the year ended December 31, 2017. The increase in interest expense was due to additional debt incurred related to the 5 acquisitions during the fourth quarter of 2017, and an increase in imputed interest of $37,207.

Net loss was $1,296,393 for the year ended December 31, 2018, compared to net loss of $506,087 for the year ended December 31, 2017. The loss during the year ended December 31, 2018 was primarily related to depreciation expense of $534,291, stock-based compensation expenses of $171,569, and corporate payroll and overhead cost of $1,030,527. The increase related to corporate overhead cost is due to additional legal and audit cost related to the Company’s acquisitions and reverse merger transaction, and the company’s proactive efforts in hiring additional employees to support the five acquisitions during the fourth quarter of 2017 and to support growth and future acquisitions.

About Manufactured Housing Properties Inc.

Manufactured Housing Properties Inc. together with its affiliates, acquires, owns, and operates manufactured housing communities. The Company focuses on acquiring and operating value-add manufactured home communities in high growth markets.

Contact:

Michael Z. Anise
Chief Financial Officer
(980) 273-1702 ext. 244

MANUFACTURED HOUSING PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2018 AND DECEMBER 31, 2017

Assets
2018 2017
Investment Property
Land
$ 4,357,950 $ 4,357,950
Site
and Land Improvements
6,781,845 6,773,316
Buildings and Improvements
1,441,222 1,239,504
Acquisition Cost
140,758 140,758
Total Investment Property
12,721,775 12,511,528
Accumulated Depreciation & Amortization
(699,184 ) (164,894
Net
Investment Property
12,022,591 12,346,634
Cash
and Cash Equivalents
458,271 355,935
Accounts Receivable, net
12,987 46,400
Other
Assets
99,472 49,971
Total
Assets
$ 12,593,321 $ 12,798,940
Liabilities
Accounts Payable
$ 71,091 $ 35,726
Loans
Payable
9,086,110 9,205,647
Loans
Payable – related party
890,632 441,882
Convertible Note Payable – Related party
2,754,550 2,754,550
Accrued Liabilities
612,819 136,360
Tenant Security Deposits
131,149 88,337
Total
Liabilities
13,546,351 12,662,502
Commitments and Contingencies (See note 6)
Stockholders’ equity (deficit)
Preferred Stock (Stock par value $0.01 per share, 10,000,000 shares authorized, of which 4,000,000 shares designated Series A Cumulative Convertible, and zero shares are issued and outstanding as of December 31, 2018 and 2017, respectively)
Common Stock (Stock par value $0.01 per share, 200,000,000 shares authorized, 10,350,062 and 10,000,062 shares are issued and outstanding as of December 31, 2018 and 2017, respectively)
103,500 100,000
Additional Paid in Capital
451,567 238,803
Accumulated deficit
(1,801,338 ) (504,945
Total Manufactured Housing Properties, Inc. Stockholders’ Deficit
(1,246,271 ) (166,142
Non-controlling interest
293,241 302,580
Total Equity (Deficit)
(953,030 ) 136,438
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
(DEFICIT)
$ 12,593,321 $ 12,798,940

MANUFACTURED HOUSING PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017

2018 2017
Revenue
Rental and Related Income
$ 1,975,312 $ 689,788
Management fees, related party
4,000
Home
sales
21,000
Total
Revenues
2,000,312 689,788
Community Operating Expenses
Repair & Maintenance
135,131 26,891
Real
estate taxes
81,024 31,840
Utilities
149,516 97,769
Insurance
54,079 12,462
General and Administrative Expense
256,631 102,368
Total
Community Operating Expenses
676,381 271,330
Corporate Payroll and Overhead
1,030,527 184,754
Depreciation & Amortization Expense
534,290 162,680
Interest expense
1,001,455 251,798
Reorganization costs
304,559
Total
Expenses
3,242,653 1,175,121
Net
loss before provision for income taxes
(1,242,341 ) (485,333 )
Provision for income taxes
8,286
Net
loss
$ (1,250,627 ) $ (485,333 )
Net
Income attributable to the non-controlling interest
45,766 20,754
Net
Loss attributable to the Company
$ (1,296,393 ) $ (506,087 )
Weighted Average Shares – Basic and Fully Diluted
10,100,747 5,175,180
Weighted Average – Basic
$ (0.13 ) $ (0.10 )
Weighted Average – Fully Diluted
$ (0.13 ) $ (0.10 )

SOURCE: Manufactured Housing Properties Inc.

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