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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
NOVEMBER 5, 2004
(Date of Report)
MANUFACTURED HOME COMMUNITIES, INC.
(Exact name of registrant as specified in its Charter)
1-11718
(Commission File No.)
MARYLAND 36-3857664
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
TWO NORTH RIVERSIDE PLAZA, CHICAGO, ILLINOIS 60606
(Address of principal executive offices) (Zip Code)
(312) 279-1400
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the following provisions (See
General Instructions A.2 below):
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule (14d-2(b)) under the
Exchange Act (17 CFR.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule (13e-4(c)) under the
Exchange Act (17 CFR.13e-4(c))
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ITEM 8.01 OTHER EVENTS
As previously announced, the Board of Directors of Manufactured Home
Communities, Inc. (NYSE: MHC) discussed its annual dividend policy at the
November 2, 2004 Board meeting. The Board discussed the significant growth
during the year due to acquisitions, the anticipated acquisition of the Thousand
Trails properties, as well as the Company's current financial position. In
addition, management recommended to the Board that preserving financial
flexibility during this period of growth was prudent. After discussion, the
Board approved setting the annual dividend rate for 2005 at $0.10 per share, an
increase over the current $0.05 per share payable in 2004. This decision
recognizes the Company's opportunities, the importance of the dividend to our
shareholders and our intention to return to a meaningful dividend at the
appropriate time. The Board expects to review the Company's annual dividend
policy again in November, 2005. As a result of the recapitalization and
additional financing costs, the Company's taxable income is expected to be such
that the Company will be able to retain a significant portion of its free cash
flow without impairing its REIT status.
The Company anticipates potential uses of its free cash flow to
include, among other things, paying down amounts outstanding on the line of
credit, acquisitions, redeeming amounts outstanding under the Company's
preferred security, and stock repurchases.
The Board of Directors also declared the Company's fourth quarter 2004
dividend of 1.25 cents per share, representing, on an annualized basis, a
dividend of $0.05 per share. The dividend will be paid on January 14, 2005 to
shareholders of record on December 31, 2004.
The forward-looking statements contained herein are subject to certain
risks and uncertainties including, but not limited to: in the age-qualified
communities, home sales results could be impacted by the ability of potential
homebuyers to sell their existing residences as well as by financial markets
volatility; in the all-age communities, results from home sales and occupancy
will continue to be impacted by local economic conditions, lack of affordable
manufactured home financing and competition from alternative housing options
including site-built single-family housing; the Company's ability to maintain
rental rates and occupancy with respect to properties currently owned or pending
acquisitions; the Company's assumptions about rental and home sales markets; the
completion of pending acquisitions and timing with respect thereto; the effect
of interest rates as well as other risks indicated from time to time in the
Company's filings with the Securities and Exchange Commission. In addition,
quarter-to-quarter results during the year are impacted by seasonality at
certain of the communities. The Company assumes no obligation to update or
supplement forward-looking statements that become untrue because of subsequent
events.
Manufactured Home Communities, Inc. owns or has an interest in 213
quality communities in 23 states consisting of 81,777 sites. MHC is a
self-administered, self-managed, real estate investment trust (REIT) with
headquarters in Chicago.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned thereunto duly authorized.
MANUFACTURED HOME COMMUNITIES, INC.
BY: \s\ Michael B. Berman
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Michael B. Berman
Vice President, Treasurer and
Chief Financial Officer
DATE: November 5, 2004