UMH Properties, Inc. Reports Second Quarter Earnings

Aug 09, 2011, 16:24 ET from UMH Properties, Inc.

FREEHOLD, N.J., Aug. 9, 2011 /PRNewswire/ -- UMH Properties, Inc. (NYSE Amex: UMH) reported funds from operations (FFO) of $4,849,000 or $.34 per share for the six months ended June 30, 2011, as compared to $5,440,000 or $.44 or the six months ended June 30, 2010.  Net income attributable to common shareholders amounted to $2,085,000 or $.15 per share for the six months ended June 30, 2011, as compared to $3,358,000 or $.27 for the six months ended June 30, 2010.  

A summary of significant financial information for the three and six months ended June 30, 2011 and 2010 is as follows:

For the Three Months Ended

6/30/11

6/30/10

Total Revenues

$

9,606,000

$

7,863,000

Total Expenses

$

8,969,000

$

7,137,000

Gain on Securities Transactions, net

$

-

$

702,000

Net Income (Loss) Attributable to Common Shareholders

$

(40,000)

$

1,473,000

Net Income (Loss) Attributable to Common Shareholders Per Share

$

-

$

.12

FFO (1)

$

1,337,000

$

2,552,000

FFO per Common Share (1)

$

.09

$

.20

Weighted Average Shares Outstanding

14,362,000

12,588,000

For the Six Months Ended

6/30/11

6/30/10

Total Revenues

$

18,622,000

$

16,024,000

Total Expenses

$

17,012,000

$

14,281,000

Gain on Securities Transactions, net

$

1,542,000

$

1,684,000

Net Income Attributable to Common Shareholders

$

2,085,000

$

3,358,000

Net Income Attributable to Common Shareholders Per Share

$

.15

$

.27

FFO (1)

$

4,849,000

$

5,440,000

FFO per Share (1)

$

.34

$

.44

Weighted Average Shares Outstanding

14,140,000

12,424,000

(1)  Non-GAAP Information:  Funds from Operations (FFO) is defined as net income excluding preferred dividends and 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 three and six months ended June 30, 2011 and 2010 is calculated as follows:

Three Months

Six Months

6/30/11

6/30/10

6/30/11

6/30/10

Net Income

$236,000

$1,473,000

$2,361,000

$3,357,000

Preferred Dividend

(276,000)

-

(276,000)

-

(Gain) Loss on Sales of Depreciable Assets

(18,000)

9,000

(26,000)

(6,000)

Depreciation Expense

1,395,000

1,070,000

2,790,000

2,089,000

FFO

$1,337,000

$2,552,000

$4,849,000

$5,440,000

The following are the cash flows provided (used) by operating, investing and financing activities for the six months ended June 30, 2011 and 2010:

2011

2010

Operating Activities

$4,368,000

$2,760,000

Investing Activities

(22,610,000)

(14,075,000)

Financing Activities

20,504,000

10,211,000

Samuel A. Landy, President, stated, "UMH has continued to perform and deliver stable earnings despite the challenging economy.  Income from community operations increased 15% from $6,391,000 for the six months ended June 30, 2010 to $7,378,000 for the comparable period this year.  This increase was primarily the result of the acquisitions of seven communities in 2010.  Occupancy remained relatively unchanged from year-end at 78%.  Our securities portfolio contributed $1.5 million in realized gains for the six month period.  At quarter end we had $5.7 million in unrealized gains on our securities investments.  UMH has continued to strengthen our already strong balance sheet and at quarter end had approximately $7.9 million in cash, and $36.6 million in REIT securities, encumbered by $2.7 million in margin loans.  During the quarter, we issued 1,338,800 shares of 8.25% Series A Preferred Stock for net proceeds of approximately $32 million.  We also completed the acquisition of three all-age communities containing 693 home sites in Tennessee for an aggregate purchase price of $13.3 million.  This acquisition increased our portfolio to thirty-eight communities containing 8,744 sites.  We are very pleased with our recent acquisitions.  We currently have one acquisition under letter of intent as well as several additional deals we are pursuing."

UMH, a publicly-owned REIT, owns and operates thirty-eight manufactured home communities located in New Jersey, New York, Pennsylvania, Ohio and Tennessee.  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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