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8-K - FORM 8-K - UMH PROPERTIES, INC.umh8kquaterernings11_92012.htm







FOR IMMEDIATE RELEASE

November 13, 2012

 

Contact:  Susan Jordan

 

732-577-9997


UMH PROPERTIES, INC. REPORTS THIRD QUARTER EARNINGS



FREEHOLD, NJ, November 13, 2012........ UMH Properties, Inc. (NYSE:UMH) reported funds from operations attributable to common shareholders (FFO) of $2,102,000 or $0.13 per share for the three months ended September 30, 2012, as compared to $1,680,000 or $0.11 per share for the three months ended September 30, 2011.  FFO was $7,562,000 or $0.47 per share for the nine months ended September 30, 2012, as compared to $6,529,000 or $0.46 per share for the nine months ended September 30, 2011.  Net income attributable to common shareholders amounted to $2,309,000 or $0.14 per common share for the nine months ended September 30, 2012, as compared to $2,187,000 or $0.15 per common share for the nine months ended September 30, 2011.  


A summary of significant financial information for the three and nine months ended September 30, 2012 and 2011 is as follows:

For the Three Months Ended

   September 30,

 

 

 

2012

 

 

2011

 

 

 

 

 

 

 

 

Total Income

$

12,187,000

 

$

9,665,000

 

Total Expenses

$

11,617,000

 

$

9,089,000

 

Gain on Securities Transactions, net

$

1,215,000

 

$

486,000

 

Net Income Attributable to Common

  Shareholders


$


161,000

 


$


103,000

 

Net Income Attributable to Common

  Shareholders per Share


$


-0-

 


$


-0-

 

FFO  (1)

$

2,102,000

 

$

1,680,000

 

FFO per Common Share  (1)

$

0.13

 

$

0.11

 

Weighted Average Shares Outstanding

 

16,395,000

 

 

14,717,000

 

 

 

 

 

 

 



(continued on next page)

For the Nine Months Ended

   September 30,






 

 

 

2012

 

 

2011

 

 

 

 

 

 

 

 

Total Income

$

34,222,000

 

$

28,287,000

 

Total Expenses

$

32,453,000

 

$

25,941,000

 

Gain on Securities Transactions, net

$

3,496,000

 

$

2,028,000

 

Net Income Attributable to Common

  Shareholders


$


2,309,000

 


$


2,187,000

 

Net Income Attributable to Common

  Shareholders per Share


$


0.14

 


$


0.15

 

FFO  (1)

$

7,562,000

 

$

6,529,000

 

FFO per Common Share  (1)

$

0.47

 

$

0.46

 

Weighted Average Shares Outstanding

 

15,966,000

 

 

14,330,000

  

 (1)  Non-GAAP Information:  Funds from Operations Attributable to Common Shareholders (FFO) is defined as net income attributable to common shareholders 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 three and nine months ended September 30, 2012 and 2011 is calculated as follows:


 

 

Three Months

 

Nine Months

 

 

9/30/12

 

9/30/11

 

9/30/12

 

9/30/11

 

 

 

 

 

 

 

 

Net Income Attributable to Common           

 

 

 

 

 

 

 

  Shareholders

 

$161,000

$103,000

 

$2,309,000

 

$2,187,000

Depreciation Expense

 

1,930,000

1,581,000

 

5,232,000

 

4,371,000

(Gain) Loss on Sales of  

  Depreciable Assets

 


11,000


(4,000)

 


21,000

 


(29,000)

FFO Attributable to Common

 

 

 

 

 

 

 

 

  Shareholders

 

$2,102,000

 

$1,680,000

 

$7,562,000

 

$6,529,000


The following are the cash flows provided (used) by operating, investing and financing activities for the nine months ended September 30, 2012 and 2011:


 

 

2012

 

2011

 

 

 

 

 

 

Operating Activities

$4,711,000

 

$5,575,000

 

Investing Activities

(53,043,000)

 

(33,874,000)

 

Financing Activities

43,975,000

 

30,090,000


(continued on next page)





A summary of significant balance sheet information as of September 30, 2012 and December 31, 2011 is as follows:

 

September 30,

2012

 

December 31, 2011

 

 

 

 

Total Assets

$280,194,000

 

$223,945,000

Securities Available for Sale

53,567,000

 

43,298,000

Mortgages Payable

106,934,000

 

90,282,000

Loans Payable

24,543,000

 

23,950,000

Total Shareholders’ Equity

143,414,000

 

105,877,000


Samuel A. Landy, President, stated, “FFO amounted to $2,102,000 or $0.13 per share for the three months ended September 30, 2012, as compared to $1,680,000 or $0.11 per share for the three months ended September 30, 2011.  Occupancy increased 300 basis points from year end from 77% to 80% at September 30, 2012.  We have seen an increase in sales during 2012.  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 $3.5 million in gains realized thus far in 2012 and an additional $7.6 million in unrealized gains at quarter end.”  


“UMH has continued to execute its growth plan.  In July, we acquired a 123-site community in New Middletown, Ohio for a purchase price of $3.4 million.  In August, we acquired 11 communities, ten located in Pennsylvania and one located in New York, for a total purchase price of $28.3 million.   In September, we acquired two communities with a total of 280 sites located in Ohio for a purchase price of $5.9 million.  Subsequent to quarter end, in October we issued 1,250,000 shares of our 8.25% Series A Preferred Stock, generating net proceeds of approximately $31 million.   The company is very well positioned to continue to execute its growth strategy.”


 

UMH, a publicly-owned REIT, owns and operates fifty-five manufactured home communities containing approximately 10,400 developed home sites. These communities are located in New Jersey, New York, Ohio, Pennsylvania, 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.

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