UMH Properties, Inc. Reports First Quarter Earnings

FREEHOLD, N.J., May 9, 2012 /PRNewswire/ -- UMH Properties, Inc. (NYSE: UMH) reported funds from operations (FFO) of $2,656,000 or $0.17 per share for the quarter ended March 31, 2012, as compared to $3,512,000 or $0.25 per share for the quarter ended March 31, 2011.  Net income attributable to common shareholders amounted to $1,059,000 or $0.07 per common share for the quarter ended March 31, 2012, as compared to $2,125,000 or $0.15 per common share for the quarter ended March 31, 2011. 

A summary of significant financial information for the three months ended March 31, 2012 and 2011 is as follows:




For the Three Months Ended
March 31,




2012



2011









Total Income

$

10,891,000


$

9,016,000


Total Expenses

$

10,210,000


$

8,043,000


Gain on Securities Transactions, net

$

1,213,000


$

1,542,000


Net Income Attributable to Common

  Shareholders

 

$

 

1,059,000


 

$

 

2,125,000


Net Income Attributable to Common

  Shareholders per Share

 

$

 

0.07


 

$

 

0.15


FFO  (1)

$

2,656,000


$

3,512,000


FFO per Common Share  (1)

$

0.17


$

.25


Weighted Average Shares Outstanding


15,495,000



13,928,000








(1)  Non-GAAP Information:  Funds from Operations (FFO) is defined as net income excluding gains (or losses) from sales of depreciable assets, plus depreciation.  FFO per share is defined as FFO divided by the weighted average shares outstanding.  FFO and FFO per share should be considered as supplemental measures of operating performance used by real estate investment trust (REITs).  FFO and FFO per share exclude historical cost depreciation as an expense and may facilitate the comparison of REITs which have different cost basis.  The items excluded from FFO and FFO per share are significant components in understanding and assessing the Company's financial performance.  FFO and FFO per share (1) do not represent cash flow from operations as defined by generally accepted accounting principles; (2) should not be considered as alternatives to net income or net income per share as measures of operating performance or to cash flows from operating, investing and financing activities; and (3) are not alternatives to cash flow as a measure of liquidity.  FFO and FFO per share, as calculated by the Company, may not be comparable to similarly entitled measures reported by other REITs.

The Company's FFO for the quarter ended March 31, 2012 and 2011 is calculated as follows:



2012


2011







Net Income

$1,750,000


$2,125,000


Preferred Dividend

(690,000)


-


Depreciation Expense

1,609,000


1,396,000


Gain on Sales of  Depreciable Assets

(13,000)


(9,000)







FFO

$2,656,000


$3,512,000

 

The following are the cash flows provided (used) by operating, investing and financing activities for the three months ended March 31, 2012 and 2011:



2012


2011







Operating Activities

$2,756,000


$2,376,000


Investing Activities

(3,912,000)


(2,763,000)


Financing Activities

1,187,000


5,273,000

 

A summary of significant balance sheet information as of March 31, 2012 and December 31, 2011 is as follows:


March 31,
2012


December 31,
2011





Total Assets

$230,774,000


$223,945,000

Securities Available for Sale

47,661,000


43,298,000

Mortgages Payable

96,307,000


90,282,000

Loans Payable

17,611,000


23,950,000

Total Shareholders' Equity

113,530,000


105,877,000

 

Samuel A. Landy, President, stated, "FFO amounted to $2,656,000 or $0.17 per share for the quarter ended March 31, 2012 as compared to $3,512,000 or $0.25 per share for the quarter ended March 31, 2011.  Occupancy remained unchanged from year-end at 77%.  However, activity in our communities has increased.  We have seen an increase in sales during the quarter.  We have also seen an increase in demand for rental units and are meeting this demand.  Our securities portfolio has continued to perform well, with $1.2 million in gains realized thus far in 2012 and an additional $6.5 million in unrealized gains at quarter end."  

"UMH has continued to acquire manufactured home communities.  In January, we acquired a 90-site community in Muncie, Indiana for a purchase price of $2.1 million.  This community will ultimately contain approximately 200 homesites.  In March, we entered into an agreement to acquire eleven communities, ten in Pennsylvania and one in New York, for a purchase price of $28.25 million.  These all-age communities total 966 developed homesites on 200 acres, and have an average occupancy of 92%.  We are currently pursuing several additional acquisitions.  We invest with a long-term perspective and believe that our sector is well poised to benefit from a resurgent housing market."

UMH, a publicly-owned REIT, owns and operates forty-one manufactured home communities located in New Jersey, New York, Pennsylvania, Ohio, Tennessee and Indiana.  In addition, the Company owns a portfolio of REIT securities.

Certain statements included in this press release which are not historical facts may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, the Company can provide no assurance those expectations will be achieved. Factors and risks that could cause actual results or events to differ materially from expectations are contained in the Company's annual report on Form 10-K and described from time to time in the Company's other filings with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.

SOURCE UMH Properties, Inc.



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http://www.umh.com

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