FREEHOLD, N.J., Aug. 7, 2013 /PRNewswire/ -- UMH Properties,
Inc. (NYSE:UMH) reported Core Funds from Operations attributable to
common shareholders (Core FFO) of $3,063,000 or $0.17
per diluted share for the quarter ended June
30, 2013, as compared to $2,992,000 or $0.19
per diluted share for the quarter ended June
30, 2012. Funds from Operations attributable to
common shareholders (FFO) as defined by the National Association of
Real Estate Investment Trusts (NAREIT) was $2,791,000 or $0.15
per diluted share for the quarter ended June
30, 2013 as compared to $2,804,000 or $0.17
per diluted share for the quarter ended June
30, 2012. FFO, as defined by NAREIT, for the current
quarter included $272,000 of
acquisition related costs, which are not included in Core
FFO.
A summary of significant financial information for the three and
six months ended June 30, 2013 and
2012 is as follows:
|
|
For the Three
Months Ended
June
30,
|
|
|
|
2013
|
|
|
2012
|
|
|
|
|
|
|
|
|
Total
Income
|
$
|
16,098,000
|
|
$
|
11,144,000
|
|
Total
Expenses
|
$
|
14,197,000
|
|
$
|
10,692,000
|
|
Gain on Securities
Transactions, net
|
$
|
371,000
|
|
$
|
1,068,000
|
|
Net Income (Loss)
Attributable to Common
Shareholders
|
$
|
(270,000)
|
|
$
|
1,088,000
|
|
Net Income (Loss)
Attributable to Common
Shareholders
per Share
|
$
|
(0.02)
|
|
$
|
0.07
|
|
Core FFO
(1)
|
$
|
3,063,000
|
|
$
|
2,992,000
|
|
Core FFO per Common
Share (1)
|
$
|
0.17
|
|
$
|
0.19
|
|
Weighted Average
Diluted Shares Outstanding
|
|
18,196,000
|
|
|
16,108,000
|
|
|
|
|
|
|
|
For the Six Months
Ended
June
30,
|
|
|
|
2013
|
|
|
2012
|
|
|
|
|
|
|
|
|
Total
Income
|
$
|
29,524,000
|
|
$
|
22,035,000
|
|
Total
Expenses
|
$
|
26,438,000
|
|
$
|
20,836,000
|
|
Gain on Securities
Transactions, net
|
$
|
3,681,000
|
|
$
|
2,281,000
|
|
Net Income
Attributable to Common
Shareholders
|
$
|
1,991,000
|
|
$
|
2,148,000
|
|
Net Income
Attributable to Common
Shareholders
per Share
|
$
|
0.11
|
|
$
|
0.14
|
|
Core FFO
(1)
|
$
|
8,318,000
|
|
$
|
5,730,000
|
|
Core FFO per Common
Share (1)
|
$
|
0.46
|
|
$
|
0.36
|
|
Weighted Average
Diluted Shares Outstanding
|
|
17,909,000
|
|
|
15,824,000
|
|
|
|
|
|
|
|
A summary of
significant balance sheet information as of June 30, 2013 and
December 31, 2012 is as follows:
|
|
|
|
|
June
30,
2013
|
|
|
December
31,
2012
|
|
|
|
|
|
|
|
|
Total
Assets
|
$
|
383,487,000
|
|
$
|
300,281,000
|
|
Securities Available
for Sale
|
$
|
50,322,000
|
|
$
|
57,325,000
|
|
Mortgages
Payable
|
$
|
154,998,000
|
|
$
|
108,871,000
|
|
Loans
Payable
|
$
|
37,121,000
|
|
$
|
10,442,000
|
|
Total Shareholders'
Equity
|
$
|
185,079,000
|
|
$
|
174,985,000
|
Samuel A. Landy, President,
commented on the second quarter of 2013 results, "UMH is pleased
with its accomplishments during the quarter. Our portfolio
occupancy increased 100 basis points over the quarter, from 81% to
82% currently and is up 400 basis points over the prior year.
Our income from community operations (defined as rental and related
income less community operating expenses) increased 20% from
$5,695,000 for the prior quarter to
$6,836,000 for the quarter ended
June 30, 2013, and increased 70% from
$4,027,000 for the quarter ended
June 30, 2012. Core FFO per share is
up 28% for the six months ended June 30,
2013 from $0.36 in the prior
year period to $0.46
currently. Our acquisitions are being well-integrated and
have resulted in increased earnings per share from our community
operations."
"In April 2013, UMH acquired
Holiday Mobile Village, a 274-site manufactured home community
located in Nashville, Tennessee,
for a purchase price of $7,250,000. Additionally, as a result of a
new mortgage in 2013, the modification of rates on existing
mortgages and paying off higher rate debt, our weighted-average
interest rate continued to improve and is now at 4.4%. Our
REIT securities portfolio continued to perform well generating
$3.7 million in realized gains in the
first half of 2013 and an additional $5.2
million in unrealized gains at quarter end. The Company
is very well positioned to continue to execute its growth strategy
and anticipates additional acquisitions in 2013."
UMH Properties, Inc., a publicly-owned REIT, owns and operates
sixty-eight manufactured home communities containing approximately
12,800 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.
(1)
|
Non-GAAP
Information: We assess and measure our overall operating
results based upon an industry performance measure referred to as
Funds From Operations (FFO), which management believes is a useful
indicator of our operating performance. FFO is used by
industry analysts and investors as a supplemental operating
performance measure of a REIT. FFO, as defined by The
National Association of Real Estate Investment Trusts (NAREIT),
represents Net Income (Loss) Attributable to Common Shareholders,
as defined by accounting principles generally accepted in the
United States of America (US GAAP), excluding Extraordinary Items,
as defined under US GAAP, Gains or Losses from sales of previously
depreciated real estate assets, Impairment Charges related to
depreciable real estate assets, plus certain non-cash items such as
Real Estate Asset Depreciation and Amortization. NAREIT
created FFO as a non-US GAAP supplemental measure of REIT operating
performance. We define Core Funds From Operations (Core FFO),
as FFO plus Acquisition Costs. FFO and Core FFO should be
considered as supplemental measures of operating performance used
by REITs. FFO and Core FFO exclude historical Cost
Depreciation as an expense and may facilitate the comparison of
REITs which have different cost bases. The items excluded
from FFO and Core FFO are significant components in understanding
the Company's financial performance.
|
|
|
|
FFO and Core FFO (i)
do not represent Cash Flow from Operations as defined by US GAAP;
(ii) should not be considered as an alternative to Net Income as a
measure of operating performance or to Cash Flows from Operating,
Investing and Financing activities; and (iii) are not alternatives
to Cash Flow as a measure of liquidity. FFO and Core FFO, as
calculated by the Company, may not be comparable to similarly
titled measures reported by other REITs.
|
The Company's FFO and
Core FFO for the three and six months ended June 30, 2013 and 2012
is calculated as follows:
|
|
|
|
Three
Months
|
|
Six
Months
|
|
|
6/30/13
|
|
6/30/12
|
|
6/30/13
|
|
6/30/12
|
Net Income (Loss)
Attributable to Common
Shareholders
|
|
$(270,000)
|
$1,088,000
|
|
$1,991,000
|
|
$2,148,000
|
Depreciation
Expense
|
|
3,009,000
|
1,692,000
|
|
5,399,000
|
|
3,301,000
|
(Gain) Loss on Sales
of Depreciable Assets
|
|
52,000
|
24,000
|
|
65,000
|
|
11,000
|
FFO Attributable to
Common Shareholders
|
|
2,791,000
|
|
2,804,000
|
|
7,455,000
|
|
5,460,000
|
Acquisition
Costs
|
|
272,000
|
|
188,000
|
|
863,000
|
|
270,000
|
Core FFO
|
|
$3,063,000
|
|
$2,992,000
|
|
$8,318,000
|
|
$5,730,000
|
|
|
|
|
The following are the
cash flows provided (used) by operating, investing and financing
activities for the six months ended June 30, 2013 and
2012:
|
|
|
|
2013
|
|
2012
|
|
|
|
|
Operating
Activities
|
|
$3,769,000
|
|
$4,075,000
|
|
|
|
|
Investing
Activities
|
|
(77,210,000)
|
|
(10,473,000)
|
|
|
|
|
Financing
Activities
|
|
76,748,000
|
|
18,525,000
|
|
|
|
|
SOURCE UMH Properties, Inc.