UMH Properties, Inc. Reports Year End Earnings

                UMH Properties, Inc. Reports Year End Earnings

PR Newswire

FREEHOLD, N.J., March 11, 2013

FREEHOLD, N.J., March 11, 2013 /PRNewswire/ -- UMH Properties, Inc. (NYSE:UMH)
reported Core Funds from Operations attributable to common shareholders (Core
FFO) of $10,010,000 or $0.62 per diluted share for the year ended December 31,
2012, as compared to $9,218,000 or $0.63 per diluted share for the year ended
December 31, 2011.    Funds from operations attributable to common
shareholders (FFO) as defined by the National Association of Real Estate
Investment Trusts (NAREIT) was $9,148,000 or $0.56 per diluted share for the
year ended December 31, 2012 as compared to $7,973,000 or $0.55 per diluted
share for the year ended December 31, 2011.  FFO, as defined by NAREIT, for
the current year included $862,000 of acquisition related costs, which are not
included in Core FFO.

A summary of significant financial information for the year ended December 31,
2012 and 2011, and for the quarters ended December 31, 2012 and 2011 is as
follows:

                                             For the Year Ended
                                             December 31,
                                               2012          2011
 Total Income                                $ 46,828,000  $ 39,313,000
 Total Expenses                              $ 44,215,000  $ 36,798,000
 Gain on Securities Transactions, net        $ 4,093,000   $ 2,693,000
 Net Income Attributable to Common                            

   Shareholders                              $ 1,749,000   $ 2,040,000
 Net Income Attributable to Common                            

   Shareholders per Share                    $ 0.11        $ 0.14
 Core FFO  (1)                               $ 10,010,000  $ 9,218,000
 Core FFO per Common Share  (1)              $ 0.62        $ 0.63
 Weighted Average Diluted Shares Outstanding   16,260,000    14,562,000

 

                                             For the Three Months Ended
                                             December 31,
                                               2012          2011
 Total Income                                $ 12,606,000  $ 11,026,000
 Total Expenses                              $ 11,761,000  $ 10,857,000
 Gain on Securities Transactions, net        $ 597,000     $ 665,000
 Net Loss Attributable to Common                              

   Shareholders                              $ (559,000)   $ (147,000)
 Net Loss Attributable to Common                              

   Shareholders per Share                    $ (0.03)      $ (0.01)
 Core FFO  (1)                               $ 1,695,000   $ 2,527,000
 Core FFO per Common Share  (1)              $ 0.10        $ 0.17
 Weighted Average Diluted Shares Outstanding   16,938,000    15,079,000

 

    Non-GAAP Information:  Funds from Operations Attributable to Common
    Shareholders (FFO) is defined by NAREIT 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
(1) 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.  Core FFO is defined as FFO
    plus acquisition costs and Loss Relating to the Flood.

The Company's FFO and Core FFO for the three and twelve months ended December
31, 2012 and 2011 is calculated as follows:

                               Three Months            Twelve Months
                               12/31/12    12/31/11    12/31/12     12/31/11
Net Income Attributable to
Common           
  Shareholders                 $(559,000)  $(147,000)  $1,749,000   $2,040,000
Depreciation Expense           2,125,000   1,591,000   7,357,000    5,962,000
(Gain) Loss on Sales of                                              

  Depreciable Assets           20,000      -           42,000       (29,000)
FFO Attributable to Common
  Shareholders                 1,586,000   1,444,000   9,148,000    7,973,000
Acquisition Costs              109,000     99,000      862,000      260,000
Loss Relating to the Flood     -           985,000     -            985,000
Core FFO                       $1,695,000  $2,528,000  $10,010,000  $9,218,000

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

                      2012          2011
 Operating Activities $9,088,000    $8,411,000
 Investing Activities (69,760,000)  (39,765,000)
 Financing Activities 62,910,000    34,491,000

 

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

 

                              December 31,  December 31,
                                            2011
                              2012
Total Assets                  $300,281,000  $223,945,000
Securities Available for Sale 57,325,000    43,298,000
Mortgages Payable             108,871,000   90,282,000
Loans Payable                 10,442,000    23,950,000
Total Shareholders' Equity    174,985,000   105,877,000

 

Samuel A. Landy, President, commented on the 2012 results, "We have grown our
portfolio by 20% this year and have funded these acquisitions by
opportunistically accessing the capital markets as well as from redeploying
the substantial gains we have realized on our securities investments. During
2012, the Company accomplished among the following:

  o Acquired 17 Communities containing a total of 1,700 developed home sites
    for $47.6 million
  o Raised approximately $75 million in common and preferred equity capital
  o Realized $4.1 million in gains from our investments in REIT securities
  o Increased occupancy from 77% to 80%

Mr. Landy stated, "UMH is pleased with its accomplishments during the year. 
Following the 11% growth in the size of our portfolio achieved in 2011, we
have added another 17 communities containing 1,700 developed home sites this
year for $47.6 million. This represents a 20% increase in the size of our
portfolio. Over the past three years we have acquired approximately $103
million in very well located communities. Subsequent to yearend, in March
2013, we acquired 10 communities for a total purchase price of $67.5 million.
 This acquisition totaled approximately 1,900 developed home sites and
increased our portfolio by an additional 18%.  The Company is very well
positioned to continue to execute its growth strategy and anticipates
additional acquisitions in 2013." 

"In 2012, we raised approximately $75 million in common and preferred equity.
This includes $57 million in preferred equity. We ended the year with net debt
to total market cap at 28% and with $11 million in cash and cash equivalents."

"Over the past three years, we have been very successful in harnessing gains
on our securities investment and redeploying that capital into our community
acquisitions. Our securities portfolio generated $4.1 million in realized
gains in 2012 and an additional $6.6 million in unrealized gains at yearend."

"Our portfolio occupancy increased 300 basis points year over year, from 77%
at December 31, 2011 to 80% at December 31, 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.  Conventional homeownership rates have continued
to fall and we believe our sector is well situated to benefit from increased
demand. Additionally, because UMH has a substantial presence throughout the
Marcellus and Utica Shale regions, we feel that there is significant long-term
potential for our portfolio."

UMH, a publicly-owned REIT, owns and operates sixty-seven manufactured home
communities containing approximately 12,500 developed home sites. These
communities are located in New Jersey, New York, Ohio, Pennsylvania,
Tennessee, Indiana and Michigan.  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.

Contact: Susan Jordan, +1-732-577-9997