Manufactured Housing Properties Inc. Refinances 42 Communities With Fnma and Adds Three Communities to Its Portfolio

Rhea-AI Summary

Manufactured Housing Properties Inc. (OTC: MHPC) announced the refinancing of 42 communities via Fannie Mae, securing $62 million in long-term financing over ten years. This refinance, effective Oct. 10, 2022, pays off 22 existing bank loans, with the first five years being interest-only at 4.87%. Additionally, $4 million is allocated for capital improvements. The company also acquired three new communities in North Carolina, expanding its portfolio to 52 communities totaling 2,472 lots. This move reinforces MHPC's presence in the Charlotte and Greensboro areas.

Positive

• Secured $62 million in long-term financing, improving cash flow.
• Interest-only payments for the first five years at a low rate of 4.87%.
• Allocated $4 million for capital improvements to enhance community value.
• Expanded portfolio by acquiring three additional communities.
• Increased total operational communities to 52, enhancing market presence.

Negative

• None.

Charlotte, North Carolina, Oct. 10, 2022 (GLOBE NEWSWIRE) -- Today, Manufactured Housing Properties Inc. (OTC: MHPC) announces the refinancing of 42 communities with Fannie Mae (“FNMA”) through KeyBank, Inc., as well as the addition of three communities to its portfolio.

The non-recourse, FNMA refinance provided long-term financing of $62 million over a ten-year term and paid off approximately twenty-two bank loans with various lenders. The first five years of debt service payments are interest-only at a rate of 4.87% and the refinance provides $4 million reserved for capital expenditures to improve the communities. The refinance encompassed 81% of MHP’s portfolio located in North Carolina, South Carolina, Georgia, and Tennessee.

Three manufactured housing communities were acquired at the end of September consisting of 122 lots and 39 homes, situated on approximately 74 acres located in Statesville, Thomasville, and Trinity, North Carolina.  The three communities expand the company’s presence near the Charlotte and Greensboro metropolitan areas. MHP has acquired nine communities in 2022 to date.

MHP now owns and operates 52 manufactured housing communities totaling 2,472 lots.

Contact:

Jay Wardlaw
President
(980) 273-1702 ext. 244

FAQ

What is the significance of MHPC's refinancing announced on October 10, 2022?

MHPC's refinancing of $62 million allows the company to pay off 22 existing loans and invest in community improvements.

How many communities does MHPC currently operate after the recent acquisitions?

After acquiring three new communities, MHPC operates a total of 52 communities.

What interest rate did MHPC secure for its refinancing deal?

MHPC secured an interest rate of 4.87% for the first five years of the refinancing.

What areas are affected by MHPC's recent community acquisitions?

The new communities acquired by MHPC are located in Statesville, Thomasville, and Trinity, North Carolina.

How does the refinancing impact MHPC's financial strategy?

The refinancing provides long-term stability and liquidity, allowing for significant capital expenditures and loan consolidation.