Attached files
| file | filename |
|---|---|
| 8-K/A - AMENDMENT NO. 1 TO CURRENT REPORT - MANUFACTURED HOUSING PROPERTIES INC. | ea122561-8ka_manufacturedhou.htm |
| EX-99.1 - STATEMENT OF REVENUES AND CERTAIN EXPENSES - MANUFACTURED HOUSING PROPERTIES INC. | ea122561ex99-1_manufactured.htm |
Exhibit 99.2
UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS
The following unaudited pro forma combined financial statements have been prepared in accordance with US GAAP and S-X Article 11 to provide pro forma information with regards to certain real estate acquisitions and financing transactions, as applicable.
On January 7, 2020, MHP Pursuits LLC, a wholly-owned subsidiary of Manufactured Housing Properties Inc., a Nevada corporation (the “Company”), entered into a purchase and sale agreement (the “Purchase Agreement”) with J & A Real Estate, LLC (“J&A”) for the purchase of a manufactured housing community known as Countryside Estates Mobile Home Park, which is located in Lancaster, South Carolina and totals 110 sites, for a total purchase price of $3.7 million, of which approximately $2.6 million will be attributed to the value of land and land improvements, and $1.1 million will be attributed to the mobile homes. Closing of the Purchase Agreement was completed on March 12, 2020 and the Company’s newly formed wholly owned subsidiary, Countryside MHP LLC, purchased the assets. The transaction will be accounted for as an asset acquisition.
The accompanying unaudited pro forma combined statements of operations of the Company are presented for the year ended December 31, 2019 and include pro forma adjustments to illustrate the estimated effect of the Company’s acquisition described above.
This unaudited pro forma combined financial information is presented for informational purposes only and does not purport to be indicative of the Company’s financial results as if the transactions reflected herein had occurred on the date or been in effect during the period indicated. This pro forma combined financial information should not be viewed as indicative of the Company’s financial results in the future and should be read in conjunction with the Company’s financial statements.
MANUFACTURED HOUSING PROPERTIES INC.
UNAUDITED PRO FORMA COMBINED STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2019
| Historical | Acquisition | Adjustment | Pro Forma | |||||||||||||
| Revenue | ||||||||||||||||
| Rental and related income | $ | 2,968,472 | $ | 485,445 | $ | 3,453,917 | ||||||||||
| Management fees, related party | 48,319 | - | 48,319 | |||||||||||||
| Home sales | 4,900 | - | 4,900 | |||||||||||||
| Total revenues | 3,021,691 | 485,445 | 3,507,136 | |||||||||||||
| Community operating expenses | ||||||||||||||||
| Repair and maintenance | 234,770 | 40,199 | 274,969 | |||||||||||||
| Real estate taxes | 142,187 | 29,018 | 171,205 | |||||||||||||
| Utilities | 212,719 | 4,116 | 216,835 | |||||||||||||
| Insurance | 83,975 | - | 83,975 | |||||||||||||
| General and administrative expense | 476,137 | 77,912 | 554,049 | |||||||||||||
| Total community operating expenses | 1,149,788 | 111,046 | 1,260,834 | |||||||||||||
| Corporate payroll and overhead | 1,253,383 | - | 1,253,383 | |||||||||||||
| Depreciation and amortization expense | 786,179 | - | 174,621 | (a) | 960,800 | |||||||||||
| Interest expense | 1,312,469 | - | 165,000 | (b) | 1,477,469 | |||||||||||
| Refinancing costs | 552,272 | - | 552,272 | |||||||||||||
| Total expenses | 5,054,091 | 151,245 | 5,544,957 | |||||||||||||
| Net income (loss) before provision for income taxes | (2,032,400 | ) | 334,200 | (2,037,821 | ) | |||||||||||
| Provision for income taxes | 6,347 | - | 6,347 | |||||||||||||
| Net income (loss) attributable to the Company | (2,038,747 | ) | 334,200 | (2,044,168 | ) | |||||||||||
| Total preferred stock dividends | 360,937 | - | 360,937 | |||||||||||||
| Net income (loss) attributable to common shareholders | $ | (2,399,684 | ) | $ | 334,200 | $ | (2,405,105 | ) | ||||||||
| Weighted average loss per share - basic and fully diluted | $ | (0.19 | ) | |||||||||||||
| Weighted averages shares - basic and fully diluted | 12,624,171 | |||||||||||||||
| (a) | Adjustment to recognize depreciation expense on the investment property and amortization expense on the acquisition costs. |
| (b) | Adjustment to recognize the interest expense on the outstanding debt issued for the purchase of investment property. |