Mobile Home Communities

PROJECT DESCRIPTION

Mobile Home Communities (“MHC”) provide low-cost housing that deliver recurring cash flows and attractive risk-adjusted returns based on solid fundamentals – high occupancies, negligible defaults in lot rental payments, high operating margins, negligible or no interruption in lot rental payments on home turnover, recession resistant, low recurring capital expenditures and favourable demographics. 

Cash flows derived from MHCs are often the least sensitive to changes in GDP and the most stable when compared to all other real estate sectors.  MHC cash flows are often stronger than those of an indexed bond, an investment vehicle where the return is guaranteed to not fall below the rate of inflation.  This is achieved through annual rental rate increases, low operating expenses or the ability to pass-through operating expenses to residents, resulting in operating income growth rates above inflation.