Will manufacturers of senior housing products begin to invest in real estate as the demand for their products wanes with the economic downturn? That appears to be the case with a Florida-based manufactured housing maker. Nobility Homes, a manufacturer of manufactured homes, has announced its first quarter results that show a .03 loss per share versus net income of .15 per share during the first quarter of 2008. Despite the pessimism in its earnings release that talks about the housing picture, financial market and the economic decline this past year and the immediate outlook for the manufactured housing industry in Florida and the nation is uncertain, the long-term demographic trends still favor good future growth in the Florida market area the company serves.
During 2008, the company announced that it invested as a limited partner in two new Florida retirement manufactured home communities. Although these investments will report non-cash losses in the initial fill-up stage, management believes that the new attractive and affordable manufactured home communities for senior citizens will be a significant growth area for Florida in the future.
For the full earnings release, click here.