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

Manufactured Housing Properties Inc.

Companies Mentioned:

Primary Exchange: OTC PINK
Under the Symbol: MHPC

$0.85

$0.0000

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

Monday, April 1, 2019 2:45 PM
  • 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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