MHC Reports First Quarter Results
CHICAGO, April 24 /PRNewswire Interactive News Release/ -- Manufactured Home Communities, Inc. (NYSE: MHC) today announced results for the first quarter ended March 31, 2001. Funds from operations (FFO) were $16.5 million or 62 cents per share (based on total stock and operating units outstanding -- fully diluted) compared to $16.8 million or 59 cents per share in the same period in 2000. First quarter 2000 FFO included approximately 2 cents per share of seasonal earnings from Mesa Regal, a 2,005-site RV resort which was sold in May of 2000. Excluding Mesa Regal, FFO would have grown approximately 8.7% from 57 cents per share in the first quarter of 2000 to 62 cents per share in the first quarter of 2001. First quarter revenues were $57.5 million compared to $57.1 million (including $2 million attributable to Mesa Regal) in the first quarter of 2000. For the first quarter of 2001, average occupancy was 94.8 percent and average monthly base rent per site for the Core Portfolio was $371.78 up from $357.81 in the same period last year.
MHC's management projects that for the year 2001 property performance will continue in line with fundamentals, with rental revenue increases of between 4 and 4.5 percent and expense growth in line with CPI. This, coupled with the Company's goal of filling between 250 and 300 expansion sites in 2001, should generate net operating income growth of 4.5 to 5 percent resulting in FFO per share growth of approximately 8 to 10 percent.
The forward-looking statements contained in this news release are subject to certain risks and uncertainties including, but not limited to, the Company's ability to maintain rental rates and occupancy; the Company's assumptions about rental and home sales markets continuing at their current strong levels; the effect of interest rates as well as other risks indicated from time to time in the Company's filings with the Securities and Exchange Commission. The Company assumes no obligation to update or supplement forward- looking statements that become untrue because of subsequent events.
Manufactured Home Communities, Inc. owns or has a controlling interest in 149 quality communities in 23 states consisting of 50,922 sites. MHC is a self-administered, self-managed, real estate investment trust (REIT) with headquarters in Chicago.
A live webcast of the Company's conference call discussing these results will be available via the Company's website in the Investor Data section at www.mhchomes.com at 10:00 a.m. Central today.
Manufactured Home Communities, Inc. Selected Financial Data (Unaudited) (Amounts in thousands except for per share data) For the quarters ended March 31, 2001 2000 Revenues Base rental income $49,013 $47,309 RV base rental income 1,850 3,699 Utility and other income 6,432 5,698 Equity in income of affiliates 23 150 Interest income 214 292 Total revenues 57,532 57,148 Expenses Property operating and maintenance 15,993 15,407 Real estate taxes 4,601 4,325 Property management 2,248 2,388 General and administrative 1,655 1,826 Total expenses 24,497 23,946 Operating income (EBITDA) 33,035 33,202 Interest and related amortization (13,406) (13,332) Depreciation on corporate assets (304) (271) Income allocated to Preferred OP Units (2,813) (2,813) Funds from operations (FFO) $16,512 $16,786 Depreciation on real estate and other costs (8,679) (8,856) Gain on sale of properties and other 8,093 --- Income allocated to Common OP Units (3,282) (1,599) Net Income $12,644 $6,331 Net income per Common Share - Basic $.61 $.28 Net income per Common Share - Fully Diluted $.59 $.28 FFO per Common Share - Basic $.63 $.60 FFO per Common Share - Fully Diluted $.62 $.59 Average Common Shares - Basic 20,793 22,297 Average Common Shares and OP Units - Basic 26,299 27,934 Average Common Shares and OP Units - Fully Diluted 26,771 28,242 Funds From Operations:
The Company believes that Funds From Operations provide an indicator of
its financial performance and is influenced by both the operations of the
properties and the capital structure of the Company. FFO is defined by the
National Association of Real Estate Investment Trusts ("NAREIT") as net income
(computed in accordance with generally accepted accounting principles
("GAAP")), before allocation to minority interests, excluding gains (or
losses) from sales of property, plus real estate depreciation. The Company
computes FFO in accordance with the NAREIT definition, which may differ from
the methodology for calculating FFO utilized by other equity REITs and,
accordingly, may not be comparable to such other REITs.
Manufactured Home Communities, Inc. (Unaudited) Selected Balance Sheet Data: As of March 31, As of Dec. 31, (Amounts in thousands) 2001 2000 Total real estate, net $1,038,531 $1,036,596 Cash and cash equivalents $3,215 $2,847 Total assets $1,110,625 $1,104,304 Mortgage notes payable $555,532 $556,578 Unsecured debt $158,106 $163,106 Total liabilities $764,221 $764,938 Minority interest $172,559 $171,271 Total shareholder's equity $173,845 $168,095 Total Shares and OP Units Outstanding: As of March 31, As of Dec. 31, 2001 2000 Total Common Shares Outstanding 21,121,329 21,064,785 Total Common OP Units Outstanding 5,503,860 5,514,330 Site Totals: As of March 31, As of Dec. 31, 2001 2000 Manufactured Housing Sites Owned and Operated 46,254 46,734 Manufactured Housing Sites in Joint Ventures 1,521 1,521 Total RV Sites 3,147 3,197 Total Sites 50,922 51,452 Site and Occupancy Averages: For the quarters ended March 31, 2001 2000 Average total sites 46,626 47,289 Average occupied sites 44,216 44,595 Occupancy % 94.8% 94.3% Monthly Base Rent Per Site $369.49 $353.62 Monthly Base Rent Per Site - Core Portfolio $371.78 $357.81 MAKE YOUR OPINION COUNT - Click Here http://tbutton.prnewswire.com/prn/11690X65862781
SOURCE Manufactured Home Communities, Inc.
Web site: http: //www.mhchomes.com
CONTACT: Marty McKenna of Manufactured Home Communities, Inc., 312-928-1901