EX-99.2 3 mhpc_ex992.htm UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS Blueprint
 
Exhibit 99.2
 
 
UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
 
The following unaudited pro forma consolidated 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 as described below.
 
On March 1, 2019, MHP Pursuits LLC, a wholly-owned subsidiary of Manufactured Housing Properties Inc., a Nevada corporation (the “Company”), entered into a purchase and sale contract with Crestview, LLC and A & A Construction Enterprises, LLC (together, the “Seller”), pursuant to which MHP Pursuits LLC agreed to purchase assets of the Crestview manufactured housing community from the Seller for $5.5 million, of which approximately $2 million will be attributed to the value of land and land improvements and $3.5 million will be attributed to manufactured houses and closing costs. The transaction will be accounted for as an asset acquisition.
 
The unaudited pro forma consolidated financial statements are presented for the year ended December 31, 2018 and the three months ended March 31, 2019 and include certain pro forma adjustments to illustrate the estimated effect of the Company’s acquisition described above.
 
The unaudited pro forma consolidated financial statements are presented for informational purposes only and do 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. The unaudited pro forma consolidated financial statements 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.
 
 
 
1
 
 
Year Ended December 31, 2018
 
 
 
Historical
 
 
Acquisition
 
 
Adjustment
 
 
Pro Forma
 
Revenue
 
 
 
 
 
 
 
 
 
 
 
 
Rental and Related Income
 $2,000,312 
 $741,861 
 $  
 $2,742,173 
Total Revenues
  2,000,312 
  741,861 
    
  2,742,173 
 
    
    
    
    
Community Operating Expenses
    
    
    
    
Repair & Maintenance
  135,131 
  27,592 
    
  162,723 
Real estate taxes
  81,024 
  19,298 
    
  100,322 
Utilities
  149,516 
  86,960 
    
  236,476 
General and Administrative Expense
  310,710 
  161,110 
    
  471,820 
Depreciation & Amortization Expense
  534,290 
  - 
  173,273(a)
  707,563 
Interest expense
  1,001,455 
  - 
  240,875(b)
  1,242,330 
Corporate compensation expenses, including stock based compensation of $59K
  1,030,527 
  - 
    
  1,030,527 
Total Expenses
  3,242,653 
  294,960 
    
  3,951,761 
 
    
    
    
    
Net Income (loss) before provision for income taxes
  (1,242,341)
  446,901 
    
  (1,209,588)
 
    
    
    
    
Provision for income taxes
  8,286 
  - 
    
  8,286 
Net Income (loss)
 $(1,250,627)
 $446,901 
    
  (1,217,874)
 
    
    
    
    
Net Income (loss) noncontrolling interest
  45,766 
  - 
    
  45,766 
 
    
    
    
    
Net Income (loss) Attributable to the Company
 $(1,296,393)
 $446,901 
    
 $(1,263,640)
 
    
    
    
    
Weighted Average - Basic and Diluted
    
    
    
  10,100,747 
 
    
    
    
    
Weighted Average - Basic
    
    
    
 $(0.13)
Weighted Average - Fully Diluted
    
    
    
 $(0.13)
 
(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.
 
 
2
 
 
Three Months Ended March 31, 2019
 
 
 
Historical
 
 
Acquisition
 
 
Adjustment
 
 
Pro Forma
 
Revenue
 
 
 
 
 
 
 
 
 
 
 
 
Rental and Related Income
 $536,374 
 $190,194 
 $  
 $726,568 
Total Revenues
  536,374 
  190,194 
    
  726,568 
 
    
    
    
    
Community Operating Expenses
    
    
    
    
Repair & Maintenance
  43,290 
  9,544 
    
  52,834 
Real estate taxes
  23,561 
  4,825 
    
  28,386 
Utilities
  31,593 
  23,504 
    
  55,097 
General and Administrative Expense
  101,377 
  38,477 
    
  139,854 
Depreciation & Amortization Expense
  134,926 
    
  43,318(a)
  178,244 
Interest expense
  232,706 
  - 
  60,219(b)
  292,925 
Corporate compensation expenses, including stock based compensation of $59K
  135,963 
  - 
    
  135,963 
Refinancing cost
  552,272 
  - 
    
  552,272 
Total Expenses
  1,255,688 
  76,350 
    
  1,435,575 
 
    
    
    
    
Net Income (loss) before provision for income taxes
  (719,314)
  113,844 
    
  (709,007)
 
    
    
    
    
Preferred stock dividends
  4,667 
  - 
    
  4,667 
Provision for income taxes
  - 
  - 
    
  - 
Net Income (loss)
 $(723,981)
 $113,844 
    
  (713,674)
 
    
    
    
    
Net Income (loss) noncontrolling interest
  - 
  - 
    
  - 
 
    
    
    
    
Net Income (loss) Attributable to the Company
 $(723,981) 
 $113,844 
    
 $(713,674)
 
    
    
    
    
Weighted Average Shares - Basic and Diluted
    
    
    
  12,527,673 
 
    
    
    
    
Weighted Average - Basic
    
    
    
 $(0.06)
Weighted Average - Fully Diluted
    
    
    
 $(0.06)
 
(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.
 
 
3