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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
May 18, 2004
(Date of Report)
MANUFACTURED HOME COMMUNITIES, INC.
(Exact name of registrant as specified in its Charter)
1-11718
(Commission File No.)
Maryland 36-3857664
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Two North Riverside Plaza, Chicago, Illinois 60606
(Address of principal executive offices) (Zip Code)
(312) 279-1400
(Registrant's telephone number, including area code)
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Item 5. Other Events and Regulation FD Disclosure
On May 17, 2004, Manufactured Home Communities, Inc. (NYSE:MHC)
announced the acquisition of eight manufactured home and resort
communities containing 4,325 sites for an aggregate purchase price of
approximately $185 million. Three of the properties are located in
Arizona, three of the properties are located in California, and two
of the properties are located in Florida. Among the acquisitions are
the Village of Monte Vista ("Monte Vista"), a premier 832 site resort
in Mesa, Arizona containing over 50 acres available for expansion and
ViewPoint RV and Golf Resort ("ViewPoint") also located in Mesa,
Arizona. ViewPoint is a premier resort containing over 1,900 sites
with an extensive amenity package, including two golf courses and
vacant land to be developed into more than 500 sites.
Thomas Heneghan, CEO and President commented "Monte Vista and
ViewPoint establish a dominant presence in our core market of Arizona.
These two award-winning communities are great examples of the
lifestyle enjoyed by our customers. Since December 2003 we have added
69 properties containing 28,922 sites and an additional 2,300
potential expansion sites."
The eight acquisitions herein utilized first mortgage debt
proceeds of approximately $110 million with an average coupon of 5.48%
and an average life of 10 years. The Company continues to finance its
acquisitions with individual first mortgage financings. The Company
issued approximately 1.1 million Operating Partnership Units in
connection with the acquisition of Monte Vista.
The Company today also announced it has closed a $50 million
revolving credit facility with Wells Fargo Bank, on the same terms as
its current $110 million credit facility. This credit facility
increases the Company's unsecured borrowing capacity to $160 million.
After these transactions, the Company has $94 million of availability
under its lines of credit.
MHC's management projects continued growth in 2004 core property
performance. Assuming current economic conditions continue to impact
occupancies, overall revenue growth will be approximately 3%. Core
portfolio operating expenses are expected to grow in excess of CPI due
to continued increases in insurance, real estate taxes and utility
expenses. These projections would result in core NOI growth of
approximately 2 to 2.5%.
Results for 2004 will continue to be impacted by: i) the
Recapitalization, ii) acquisitions, including the pending litigation
on the PAMI transaction, iii) continued competitive housing options
impacting occupancy levels at certain communities, and iv) variability
in income from home sales operations. In age-qualified communities,
home sales results could be impacted by the ability of potential
homebuyers to sell their existing residences as well as by financial
markets volatility. In the all-age communities, results from home
sales and occupancy will continue to be impacted by local economic
conditions, lack of affordable manufactured home financing and
competition from alternative housing options, including site-built
single-family housing. Based upon these factors and excluding
potential acquisitions, MHC projects that fully diluted Funds From
Operations ("FFO") per share should be between $ 1.85 and $ 1.90 for
the full year of 2004.
On a pro forma basis, the Company's acquisitions since December,
2003 would have added approximately $.42 fully diluted FFO per share
to the Company's previously announced initial 2004 guidance of $1.65 -
$1.70 fully diluted FFO per share.
The forward-looking statements contained herein are subject to
certain risks and uncertainties including, but not limited to, the
Company's ability to maintain rental rates and occupancy with respect
to properties currently owned or pending acquisitions; the Company's
assumptions about rental and home sales markets; the completion of
pending acquisitions and timing with respect thereto; 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 208 quality communities in 23 states consisting of 79,741
sites. MHC is a self-administered, self-managed, real estate
investment trust (REIT) with headquarters in Chicago.
SIGNATURE
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned thereunto duly authorized.
MANUFACTURED HOME COMMUNITIES, INC.
BY: /s/ Michael B. Berman
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Michael B. Berman
Vice President, Treasurer and
Chief Financial Officer
DATE: May 18, 2004