MHC Reports Year End 2000 Results
CHICAGO, Jan. 25 /PRNewswire/ -- Manufactured Home Communities, Inc. (NYSE: MHC) today announced results for the fourth quarter and year ended December 31, 2000. For the fourth quarter of 2000, funds from operations (FFO) were $16.4 million or 62 cents per share (based on total stock and operating units outstanding - fully diluted) compared to $16.2 million or 55 cents per share in the same period in 1999. Fourth quarter revenues were $55.4 million compared to $54.7 million in the fourth quarter of 1999. For the fourth quarter of 2000, average occupancy was 94.6 percent and average monthly base rent per site for the Core Portfolio was $360.51 up from $346.00 in the same period last year.
For the year ended December 31, 2000, FFO were $63.8 million or $2.33 per share (based on total stock and operating units outstanding -- fully diluted) compared to $68.5 million or $2.19 per share in the same period in 1999. Revenues, for the year ended December 31, 2000, were $220.7 million compared to $215.0 million in the same period in 1999. For the year ended December 31, 2000, average occupancy was 94.4 percent and average monthly base rent per site for the Core Portfolio was $357.35, up from $344.04 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 revenues increases of between 4 and 4.5 percent and expense growth in line with CPI. This, coupled with the Company's goal of filling 300 expansion sites in 2001, should generate net operating income growth of approximately 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 154 quality communities in 26 states consisting of 51,452 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)
Quarters Ended Years Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2000 1999 2000 1999
Revenues
Base rental income $47,705 $46,027 $189,481 $181,672
RV base rental income 1,979 2,685 7,414 9,526
Utility and other income 4,665 4,500 20,366 20,096
Equity in income of affiliates 759 900 2,408 2,065
Interest income 278 542 1,009 1,669
Total revenues 55,386 54,654 220,678 215,028
Expenses
Property operating and
maintenance 14,728 14,865 59,199 58,038
Real estate taxes 4,082 3,900 16,888 16,460
Property management 2,058 2,143 8,690 8,337
General and administrative 1,417 1,525 6,423 6,092
Total expenses 22,285 22,433 91,200 88,927
Operating income (EBITDA) 33,101 32,221 129,478 126,101
Interest and related
amortization (13,626) (12,944) (53,280) (53,775)
Depreciation on corporate
assets (300) (272) (1,139) (1,005)
Income allocated to
Preferred OP Units (2,813) (2,813) (11,252) (2,844)
Funds from operations (FFO) $16,362 $16,192 $63,807 $68,477
Depreciation on real
estate and other costs (8,477) (9,136) (34,411) (34,486)
Gain on sale of properties
and other --- --- 12,053 ---
Extraordinary loss on early
extinguishment of debt --- --- (1,305) ---
Income allocated to Common
OP Units (1,641) (1,357) (8,199) (6,219)
Net Income $6,244 $5,699 $31,945 $27,772
Net income per Common
Share - Basic $.30 $.24 $1.49 $1.10
Net income per Common
Share - Fully Diluted $.30 $.24 $1.46 $1.09
FFO per Common Share - Basic $.63 $.56 $2.36 $2.21
FFO per Common Share - Fully
Diluted $.62 $.55 $2.33 $2.19
Average Common Shares - Basic 20,559 23,381 21,469 25,224
Average Common Shares and OP
Units - Basic 26,108 29,021 27,061 30,928
Average Common Shares and OP
Units - Fully Diluted 26,520 29,281 27,408 31,252
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)
As Of As Of
Selected Balance Sheet Data: Dec. 31, Dec. 31,
2000 1999
(amounts (amounts
in 000's) in 000's)
Total real estate, net $1,036,596 $1,113,586
Cash and cash equivalents $2,847 $6,676
Total assets $1,106,044 $1,160,338
Mortgage notes payable $556,578 $513,172
Unsecured debt $163,106 $212,092
Total liabilities $764,938 $769,540
Minority interest $171,632 $179,397
Total shareholder's equity $169,474 $211,401
As Of As Of
Dec. 31, Dec. 31,
Total Shares and OP Units Outstanding: 2000 1999
Total Common Shares Outstanding 21,064,785 22,813,357
Total Common OP Units Outstanding 5,514,330 5,633,183
As Of As Of
Dec. 31, Dec. 31,
Site Totals: 2000 1999
Manufactured Housing Sites Owned and Operated 46,734 47,284
Manufactured Housing Sites in Joint Ventures 1,521 1,521
Total RV Sites 3,197 5,202
Total Sites 51,452 54,007
Quarters Ended Years Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
Site and Occupancy Averages: 2000 1999 2000 1999
Total Sites 46,724 47,284 46,964 46,914
Occupied Sites 44,212 44,515 44,325 44,110
Occupancy % 94.6% 94.1% 94.4% 94.0%
Monthly Base Rent Per Site $359.67 $344.67 $356.24 $343.22
Core* Monthly Base Rent
Per Site $360.51 $346.00 $357.35 $344.04
(*) Represents rent per site for properties owned in both periods of
comparison
SOURCE Manufactured Homes Communities, Inc.
Web site: http: //www.mhchomes.com
CONTACT: Marty McKenna of Manufactured Home Communities, 312-928-1901