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 and financing transactions, as applicable.
On August 5, 2019, MHP Pursuits LLC, a wholly-owned subsidiary of Manufactured Housing Properties Inc., a Nevada corporation (the “Company”), entered into a purchase agreement (the “Purchase Agreement”) with CSC Warner Robins, LLC (“CSC”) , pursuant to which MHP Pursuits LLC agreed to purchase all of the assets of CSC for $5.3 million, of which approximately $3.7 million will be attributed to the value of land and land improvements and $1.6 million will be attributed to the mobile homes. Closing of the Purchase Agreement was completed on November 14, 2019 and the Company’s newly formed wholly owned subsidiary, Springlake MHP LLC, purchased the assets. 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 nine months ended September 30, 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.
MANUFACTURED HOUSING PROPERTIES INC.
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2018
| | | | | |
| Revenue | | | | |
| Rental and related income | $2,000,312 | $505,695 $ | $ | $2,506,007 |
| Total revenues | 2,000,312 | 505,695 | | 2,506,007 |
| | | | | |
| Community operating expenses | | | | |
| Repair and maintenance | 135,131 | 9,550 | | 144,681 |
| Real estate taxes | 81,024 | 26,674 | | 107,698 |
| Utilities | 149,516 | 46,320 | | 195,836 |
| General and administrative expense | 310,710 | 149,223 | | 459,933 |
| Depreciation and amortization expense | 534,290 | - | 245,625(a) | 779,915 |
| Interest expense | 1,001,455 | - | 169,071(b) | 1,170,526 |
| Corporate compensation expenses, including stock based compensation of $59K | 1,030,527 | - | | 1,030,527 |
| Total expenses | 3,242,653 | 231,767 | | 3,889,116 |
| | | | | |
| Net income (loss) before provision for income taxes | (1,242,341) | 273,928 | | (1,383,109) |
| | | | | |
| Provision for income taxes | 8,286 | - | | 8,286 |
| Net income (loss) | $(1,250,627) | $273,928 | | (1,391,395) |
| | | | | |
| Net income (loss) noncontrolling interest | 45,766 | - | | 45,766 |
| | | | | |
| Net income (loss) attributable to the Company | $(1,296,393) | $273,928 | | $(1,345,629) |
| | | | | |
| Weighted average loss per share - basic and fully diluted | | | | $(0.13) |
| | | | | |
Weighted average shares - basic and fully diluted
| | | | 10,100,747
|
(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.
MANUFACTURED HOUSING PROPERTIES INC.
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019
| | | | | |
| Revenue | | | | |
| Rental and related income | $1,983,283 | $384,714 | $- | $2,367,997 |
| Total revenues | 1,983,283 | 384,714 | | 2,367,997 |
| | | | | |
| Community operating expenses | | | | |
| Repair and maintenance | 160,621 | 7,068 | | 167,689 |
| Real estate taxes | 110,660 | 19,821 | | 130,481 |
| Utilities | 130,744 | 40,120 | | 170,864 |
| General and administrative expense | 274,203 | 114,239 | | 388,442 |
| Depreciation and amortization expense | 496,966 | | 184,219(a) | 681,185 |
| Interest expense | 1,076,254 | - | 126,803(b) | 1,203,057 |
| Corporate compensation expenses, including stock based compensation of $59K | 587,463 | - | | 587,463 |
| Refinancing cost | 552,272 | - | | 552,272 |
| Total expenses | 3,389,183 | 181,248 | | 3,881,453 |
| | | | | |
| Net income (loss) before provision for income taxes | (1,405,900 | 203,466 | | (1,513,456 |
| | | | | |
| Preferred stock dividends | 90,834 | - | | 90,834 |
| Provision for income taxes | - | - | | - |
| Net income (loss) | $(1,496,734) | $203,466 | | (1,604,290) |
| | | | | |
| Net income (loss) noncontrolling interest | - | - | | - |
| | | | | |
| Net income (loss) attributable to the Company | $(1,496,734) | $203,466 | | $(1,604,290) |
| | | | | |
| Weighted average loss per share - basic and fully diluted | | | | $(0.13) |
| | | | | |
Weighted average shares - basic and fully diluted
| | | | 12,738,962
|
(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.
