FREEHOLD, N.J., March 15, 2012 /PRNewswire/ -- UMH Properties,
Inc. (NYSE: UMH) reported funds from operations of $7,973,000 or $.55
per share for the year ended December 31,
2011, as compared to $11,193,000 or $.88
per share for the year ended December 31,
2010. Funds from operations adjusted for loss relating
to flood amounted to $8,958,000 or
$.62 per share for the year ended
December 31, 2011, as compared to
$11,193,000 or $.88 per share for the year ended December 31, 2010. Net income amounted to
$3,696,000 or $.25 per share for the year ended December 31, 2011, as compared to $6,669,000 or $.52
per share for year ended December 31,
2010. Net income attributable to Common Shareholders
amounted to $2,039,000 or
$.14 per share for the year ended
December 31, 2011, as compared to
$6,669,000 or $.52 per share for year ended December 31, 2010.
A summary of significant financial information for the years
ended December 31, 2011 and 2010, and
for the quarters ended December 31,
2011 and 2010, is as follows:
|
For the
Years Ended December 31,
|
|
|
|
|
2011
|
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
Total Income
|
$
|
39,313,000
|
|
$
|
34,011,000
|
|
|
Total Expenses
|
$
|
37,175,000
|
|
$
|
30,731,000
|
|
|
Gain on Securities
Transactions, net
|
$
|
2,693,000
|
|
$
|
3,932,000
|
|
|
Net Income
|
$
|
3,696,000
|
|
$
|
6,669,000
|
|
|
Net Income Attributable to
Common
|
|
|
|
|
|
|
|
Shareholders
|
$
|
2,039,000
|
|
$
|
6,669,000
|
|
|
Net Income per
Share
|
$
|
.25
|
|
$
|
.52
|
|
|
Net Income Attributable to
Common
|
|
|
|
|
|
|
|
Shareholders per Share
|
$
|
.14
|
|
$
|
.52
|
|
|
FFO (1)
|
$
|
7,973,000
|
|
$
|
11,193,000
|
|
|
FFO per Share
(1)
|
$
|
.55
|
|
$
|
.88
|
|
|
Adjusted FFO
(1)
|
$
|
8,958,000
|
|
$
|
11,193,000
|
|
|
Adjusted FFO per Share
(1)
|
$
|
.62
|
|
$
|
.88
|
|
|
Weighted Average Shares
Outstanding
|
|
14,507,000
|
|
|
12,768,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Quarters Ended December 31,
|
|
|
|
|
2011
|
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
Total Income
|
$
|
11,027,000
|
|
$
|
9,517,000
|
|
|
Total Expenses
|
$
|
10,993,000
|
|
$
|
8,775,000
|
|
|
Gain on Securities
Transactions, net
|
$
|
665,000
|
|
$
|
1,637,000
|
|
|
Net Income
|
$
|
543,000
|
|
$
|
2,114,000
|
|
|
Net Income (Loss)
Attributable to
|
|
|
|
|
|
|
|
Common Shareholders
|
$
|
(148,000)
|
|
$
|
2,114,000
|
|
|
Net Income per
Share
|
$
|
.04
|
|
$
|
.16
|
|
|
Net Income (Loss)
Attributable to
|
|
|
|
|
|
|
|
Common Shareholders per Share
|
$
|
(.01)
|
|
$
|
.16
|
|
|
FFO (1)
|
$
|
1,444,000
|
|
$
|
3,381,000
|
|
|
FFO per Share
(1)
|
$
|
.10
|
|
$
|
.25
|
|
|
Adjusted FFO
(1)
|
$
|
2,429,000
|
|
$
|
3,381,000
|
|
|
Adjusted FFO per Share
(1)
|
$
|
.16
|
|
$
|
.25
|
|
|
Weighted Average Shares
Outstanding
|
|
15,031,000
|
|
|
13,389,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 trusts (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 is
calculated as follows:
|
|
|
|
For the
Years Ended
|
|
For the
Quarters Ended
|
|
|
|
12/31/11
|
|
12/31/10
|
|
12/31/11
|
|
12/31/10
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$3,696,000
|
$6,669,000
|
|
$543,000
|
|
$2,114,000
|
|
Less: Preferred
Dividend
|
|
(1,656,000)
|
-
|
|
(690,000)
|
|
-
|
|
Loss (Gain) on Sales
of
Depreciable
Assets
|
|
(29,000)
|
8,000
|
|
-
|
|
9,000
|
|
Depreciation Expense
|
|
5,962,000
|
4,516,000
|
|
1,591,000
|
|
1,258,000
|
|
|
|
|
|
|
|
|
|
|
FFO
|
|
7,973,000
|
11,193,000
|
|
1,444,000
|
|
3,381,000
|
|
Loss Relating to
Flood
|
|
985,000
|
-
|
|
985,000
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Adjusted FFO
|
|
$8,985,000
|
$11,193,000
|
|
$2,429,000
|
|
$3,381,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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The following are the cash flows provided by (used in)
operating, investing and financing activities for the years ended
December 31, 2011 and 2010:
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
Operating
Activities
|
$8,411,000
|
|
$6,482,000
|
|
|
Investing
Activities
|
(39,765,000)
|
|
(33,894,000)
|
|
|
Financing
Activities
|
34,491,000
|
|
28,554,000
|
|
|
|
|
|
|
|
|
A summary of significant balance sheet information as of
December 31, 2011 and 2010 is as
follows:
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
Total Assets
|
$223,945,000
|
|
$188,781,000
|
|
Securities Available for
Sale
|
43,298,000
|
|
28,757,000
|
|
Mortgages Payable
|
90,282,000
|
|
90,816,000
|
|
Loans Payable
|
23,950,000
|
|
22,236,000
|
|
Total Shareholders'
Equity
|
105,877,000
|
|
71,928,000
|
|
|
|
|
|
|
|
Samuel A. Landy, President,
commented, "UMH has continued to deliver stable earnings despite
the length and depth of the housing recession. Our community
occupancy remained stable at 77%. Our sales of manufactured homes
increased slightly in 2011 but continue to be disappointing
compared to our sales in normal years. Increased manufactured
home sales into our communities are the key to increased occupancy.
Increased occupancy would favorably impact income from
community operations."
"During 2011, we were also impacted by a severe flood across
much of Tennessee which closed
Memphis Mobile City, a 157-site community in Memphis, Tennessee. In addition to lost
rental revenues from this community, we have recorded a flood loss
of approximately $1 million net of
insurance proceeds."
"UMH did make substantial progress in 2011. On May 26th we raised net proceeds of $31.9 million as a result of our Series A 8.25%
perpetual preferred offering. We acquired five well-located
communities in Tennessee,
Pennsylvania and Ohio for an aggregate purchase price of
$17.5 million. These acquisitions
increased our portfolio by approximately 900 sites or 11%. Because
all of these acquisitions effectively closed in the second half of
the year, their contribution to our 2011 results was minimal.
Subsequent to yearend, we acquired a 90-site community in
Indiana for $2.1 million. This brings our portfolio to 41
communities containing approximately 9,000 developed sites. In
addition, we own over 500 acres of land that will be used to
increase our portfolio as demand warrants. As we see the full run
rate effect of our recent acquisitions and continue to deploy the
proceeds from our preferred offering, our earnings per share should
increase."
"Our REIT securities portfolio continued to perform very well
generating $2.7 million in realized
gains in 2011. At yearend we had approximately $43.3 million in securities with an unrealized
gain of $2.5 million. Over the past
two years, we have been very successful in harnessing gains on our
securities investments and redeploying the capital into our
community acquisitions."
"Despite the challenges in the broad economy, UMH is pleased
with its accomplishments during the year. UMH continues to
strengthen its already strong balance sheet. Our debt to total
capitalization is approximately 40%. We have reduced our weighted
average interest rate on our mortgages from 5.8% to 5.6% over the
12 month period. UMH is well positioned to benefit from a
resurgence in the housing sector. Lastly, the first months of
2012 are too short a period to make any firm predictions on a
housing recovery. The results for the first two months as to
sales and occupancy are consistent with a housing recovery in
2012."
UMH Properties, Inc., a publicly-owned real estate investment
trust, owns and operates forty-one manufactured home communities
located in Indiana, 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.