Teaching An Old Dog New Tricks

Blog # 587 @ 29 May 2020; Copyright 2020. Educatemhc.com

Perspective. ‘Land lease communities, previously manufactured home communities, and earlier, ‘mobile home parks’, comprise the real estate component of manufactured housing.’

EducateMHC is the online national advocate, asset class historian, data researcher, education resource, and communication media, for all land lease communities throughout North America!

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INTRODUCTION: Pretty straightforward content today, so no explanations offered. Enjoy.


Teaching An Old Dog New Tricks

Making an assumption here. Most blog floggers (‘readers’) of this weekly trade news media, are now aware of the monthly ‘MHShipment Volume (+) Stock Market Report’ I research and compile for EducateMHC. It’s distributed as a Resource Document supplement in every PRIME edition of The Allen Confidential! business newsletter. But what is probably not realized, is the degree and nature, range and specificity of the statistical research required for each monthly report.

Besides ‘crunching’ official HUD-Code manufactured housing shipment totals supplied by the Institute for Building Technology and Safety (‘IBTS’), we follow eight public companies (four HUD-Code housing manufacturers & four land lease community property portfolios), relative to their stock prices and market cap values; plus, we calculate a ‘Manufactured Housing & Land Lease Community – Composite Stock Index’ (‘CSI’). All that’s newsy and helpful enough; but ‘the fun begins’ when listening-in on quarterly earnings calls hosted by these pubic firms.

Here’s what we learned – and didn’t learn, during the last week or two, from a few calls:

• At least one HUD-Code housing manufacturer observes how new home shipment volume, going directly into land lease communities, has already returned to the 40 percent level enjoyed before COVID-19.
• Another manufacturer, while experiencing lower sales traffic thru their retail sales centers (a.k.a. ‘company stores’), see higher conversion percentages; i.e. ‘Fewer people visiting, more people buying!’

• And in some cases, retail sales centers located in close proximity to certain major SMAs, or urban centers, are experiencing ‘city folk’ now buying manufactured homes to site in rural and suburban environs.

• Finally; it was surprising (but discouraging), there’s been NO mention whatsoever of CrossMod™ home sales and placements, in any of these earning calls. Wonder why?

It’s also been interesting to observe how one or another HUD-Code manufacturer schedules earning calls as early as 8AM in the morning. And how another firm distributes its’ Form 8-K SEC filing report the same day as its’ earnings call, or so it appears. Go figure.

Point? If you’re not reading EducateMHC’s monthly ‘MHShipment Volume (+) Stock Market Report’, you should be – especially if a Wall Street investor or analyst, HUD-Code housing manufacturer, and or land lease community portfolio owner/operator. Never before, in the history of manufactured housing and land lease communities, have we tracked business and investment performance in this manner! To avail yourself of this new, continuing and illuminating opportunity, visit www.educatemhc.com and subscribe to The Allen Confidential! at the PRIME level!

Furthermore; whether in aforementioned ‘MHShipment Volume (+) Stock Market Report’ or The Allen Confidential! business newsletter, know they are your most accurate, timely, and helpful sources of MH & LLCommunity-related news! How so? Two examples quoted from April/May 2020 issue of NREI magazine:

• Of 17 commercial real estate investment categories, “Hotels, casinos, student housing assets and malls saw the largest jumps in cap rates from 31 January thru 16 March.” P.4. Manufactured housing/RVs (i.e. ‘communities’), along with ‘towers’ & ‘data centers’ experienced the smallest incremental moves in cap rates, with land lease communities at 93 basis points – compared to hotels @ 403 basis points. Did someone say our ‘communities’ are recession-proof?

• And this inside look: “Most of the equity groups have hit the pause button until they can evaluate how the virus will impact the job market long term. Jobs equal renters – it’s that simple.”P.12 And with landlord/tenant legislation in the air, another good and timely reason to be cautious about further property consolidation.

And this from a recent Press Release: REIT, UMH Properties, will conduct its’ annual meeting, 24 June, in virtual fashion! Seems more and more companies are doing so these days. There’s even talk about the highly popular and heavily attended SECO Conference, in September in Atlanta, being done conducted in like fashion, but no final decision yet. However, the 29th annual Networking Roundtable is on schedule for 2-4 September, in Nashville, TN. For information, visit www.educatemhc.com Speaking of meetings, we’ve just learned the 2nd annual Innovative Housing Showcase, on the National Mall in Washington, DC., has been postponed from this fall to sometime during year 2021.

Furthermore, here at EducateMHC we routinely go more afield, than other business news-reporting media, to glean information you can use. Here’s a news tidbit from The Epoch Times, 21-27 May 2020: “According to a study, 68 percent of people who are eligible for unemployment benefits receive compensation that exceeds their prior wage.” So, why go back to work? – they say.


Response to
‘This Patriot
Practices Discerning News Intake & Citizen Punditry’
‘How ‘bout You?’

Unsolicited input from a blog flogger (reader) in California. “George, this will not surprise; but rather confirm, what you know about me. I agree with what is penned here. Do not abide much with TV news except FOX; and stick with my small town newspaper only. I began, after my wife died ten years ago, participating in local government, and have found local small community and county governments – councils and commissions, also do not participate as the ‘national media’ would like us to believe. We stick to government being simple (nothing is really simple) and focused upon protection from evil and infrastructure problems, so we can use our God-given free will to survive, worship, succeed, and find individual happiness!” NB

And this: “I’m with you!” CC

George Allen, CPM, MHM

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