Proposed 2020 MVC Trust budget

[Fasttr]

https://image.email1.marriott-vacat.../m/1/51d34ccb-c609-4fe3-a62d-a77ff08d3e67.pdf

Appears proposed MF's up from 58 cents a point to 60.4 cents a point (4.1% increase). Proposed dues appear to be staying the same.

 

[StevenTing]

I was just going to post this. From $145 to $151 per BI. I haven’t had a chance to compare yet but the increase is not unexpected.

 

[JIMinNC]

Just got an email this morning announcing the MVC Trust Owners Association Board Meeting later this month which will approve the 2020 Budget.

If approved as shown, the maintenance fee per beneficial interest will go from $145 to $151. With each beneficial interest being 250 points, that means the maintenance fee will go from $0.58 per point in 2019 to $0.6040 per point in 2020, a 4.1% increase.

From 2018 to 2019 the fee went from $138.25 to $145, a 4.9% increase
From 2017 to 2018 the fee went from $131.80 to $138.25, a 4.9% increase
From 2016 to 2017 the fee went from $125.62 to $131.80, a 4.9% increase
From 2015 to 2016 the fee went from $118.75 to $125.62, a 5.8% increase

So, I guess at least one positive is this is the smallest increase in the last five years

 

[JIMinNC]

I've asked the Moderator to combine my info that I posted about the same time into this thread. This is the smallest increase in the last five years.

[Done. See above post.]

 

[Steve Fatula]

Yeah, several pieces went down (total trust admin expense), but, the component expenses are the big increase, dollar wise. Looks like those are essentially MF paid to the resorts in the trust?

 

[JIMinNC]

Yeah, several pieces went down (total trust admin expense), but, the component expenses are the big increase, dollar wise. Looks like those are essentially MF paid to the resorts in the trust?

Correct. Component expenses are the Trust's share of maintenance fees for the weeks they own.

 

[DannyTS]

I get this. The resort expenses (that the owners pay) have to go up and the corporate expenses have to go down.

 

[DannyTS]

https://image.email1.marriott-vacat.../m/1/51d34ccb-c609-4fe3-a62d-a77ff08d3e67.pdf

Appears proposed MF's up from 58 cents a point to 60.4 cents a point (4.1% increase). Proposed dues appear to be staying the same.

looking at Exhibit "A" can one deduce the % of units in the trust for each resort? I gather those are the reserves for each resort, but only the part that is owned by the trust. If one knows the total reserves for each resort, it is easy to calculate how much of each resort is part of the trust.

 

[dioxide45]

looking at Exhibit "A" can one deduce the % of units in the trust for each resort? I gather those are the reserves for each resort, but only the part that is owned by the trust. If one knows the total reserves for each resort, it is easy to calculate how much of each resort is part of the trust.

The problem is that not all resorts are even listed.

 

[Fasttr]

Some interesting factoids (sorry SueDonJ....lots of numbers!!)

2020 Beneficial Interests total 2,139,641 (calculated $323,085,793 / $151)
2019 Beneficial Interests total 1,908,300 (calculated $276,703,500 / $145)
12.1% BI growth in the Trust

MF per point broken down as follows:
2020 $0.604
Component Expenses (underlying MF's paid to resorts) $0.565 (calculated $302,464,821 / 2,139,641 / 250)
Trust Admin Costs (cost to run the Trust) $0.046 (calculated ($57,963,731-$33,316,350) / 2,139,641 / 250)
Fee Recovery (Late Fee Income, Interest earned, etc) -$0.0075 (calculated $4,026,409 / 2,139,641 / 250)

2019 $0.58
Component Expenses (underlying MF's paid to resorts) $0.54 (calculated $257,694,623 / 1,908,300 / 250)
Trust Admin Costs (cost to run the Trust) $0.0465 (calculated ($52,601,040-$30,412,577) / 1,908,300 / 250)
Fee Recovery (Late Fee Income, Interest earned, etc) -$0.0067 (calculated $3,179,586 / 1,908,300 / 250)

MF's per point on the underlying Component Inventory held in the trust went up from 54 cents a point to 56.5 cents a point. Must be a lot of high MF/point inventory being conveyed.

 

[DannyTS]

The problem is that not all resorts are even listed.

which ones? I think the Floridian resorts are excluded, not required by law:
Exhibit A: As required by Florida law, the table below provides the following information for the non-Florida sites in the MVC Trust: (i) the amount of reserve funding required by the law of the situs state for the interests at such component owned by MVC Trust, and (ii) the amount of reserve funding actually provided (if any) in the MVC Trust Association’s budget for such interests. The Association is responsible for paying a portion of the amounts necessary for reserves under the Component Association’s budget and the Association’s budget includes these reserve items in the Component Expenses

 

[Fasttr]

I was looking at Dioxide's Trust Conveyances thread
https://tugbbs.com/forums/index.php?threads/recorded-trust-documents.124949/

And plucked out some Trust point values at various times as listed.....then tacked on the 2019 and 2020 info that can be gleaned from the 2019 and 2020 budgets.

Total points in the Trust at various points in time....
42.3M June 2010
64.9M Nov 2010
87.7M May 2011
113.8M Sept 2011
137.5M Feb 2012
172.9M Aug 2012
207.0M Mar 2013
230.5M Dec 2013
378.7M Dec 2016
477.1M Budget 2019
534.9M Budget 2020

The Trust has seen some crazy growth over the past 10 years.

 

[TheTimeTraveler]

I was looking at Dioxide's Trust Conveyances thread
https://tugbbs.com/forums/index.php?threads/recorded-trust-documents.124949/

And plucked out some Trust point values at various times as listed.....then tacked on the 2019 and 2020 info that can be gleaned from the 2019 and 2020 budgets.

Total points in the Trust at various points in time....
42.3M June 2010
64.9M Nov 2010
87.7M May 2011
113.8M Sept 2011
137.5M Feb 2012
172.9M Aug 2012
207.0M Mar 2013
230.5M Dec 2013
378.7M Dec 2016
477.1M Budget 2019
534.9M Budget 2020

The Trust has seen some crazy growth over the past 10 years.

Looks like the trust had more than ten times growth in the 9 years between 2010 and 2019 going from 42 million points to over 477 million points.

A lot of this growth can be attributable to properties such as Oceana Palms, Marco Island, Grand Chateau, and Ko Olina.




.

 

[dioxide45]

Looks like the trust had more than ten times growth in the 9 years between 2010 and 2019 going from 42 million points to over 477 million points.

A lot of this growth can be attributable to properties such as Oceana Palms, Marco Island, Grand Chateau, and Ko Olina.




.

Perhaps also some of the Pulse properties.

 

[DannyTS]

I was looking at Dioxide's Trust Conveyances thread
https://tugbbs.com/forums/index.php?threads/recorded-trust-documents.124949/

And plucked out some Trust point values at various times as listed.....then tacked on the 2019 and 2020 info that can be gleaned from the 2019 and 2020 budgets.

Total points in the Trust at various points in time....
42.3M June 2010
64.9M Nov 2010
87.7M May 2011
113.8M Sept 2011
137.5M Feb 2012
172.9M Aug 2012
207.0M Mar 2013
230.5M Dec 2013
378.7M Dec 2016
477.1M Budget 2019
534.9M Budget 2020

The Trust has seen some crazy growth over the past 10 years.

an average of 30M growth in the last 5 years. I do not find the amount high at all given that the MVW's sales income is about 350M per year and given that they sell points now at most of the resorts

 

[BocaBoy]

Here we go again with maintenance fees at the various resorts. Almost no inflation and we have the typical 4-5% MVCI maintenance fee increases. This even occurred during the Great Recession, when quite a few costs were even going down. This has been primarily a phenomenon of the past 10-15 years. Before that, Marriott did a good job of restraining fee increases, even though inflation was much higher then. We even had two or three years in the 90's when maintenance fees actually decreased at Sabal Palms, which was what we owned at the time.