UMH Properties, Inc. Reports Nine-Month Earnings
09 November 2007 - 9:14AM
PR Newswire (US)
FREEHOLD, N.J., Nov. 8 /PRNewswire-FirstCall/ -- UMH Properties,
Inc. (AMEX:UMH) reported net income of $2,876,000 or $0.27 a share
for the nine months ended September 30, 2007, as compared to
$3,635,000 or $0.36 a share for the nine months ended September 30,
2006. A summary of significant financial information for the three
months and nine months ended September 30, 2007 and 2006 is as
follows: For the Three Months Ended 9/30/07 9/30/06 Total Revenues
$9,971,000 $9,894,000 Total Expenses $9,884,000 $9,659,000 Net
Income $110,000 $276,000 Net Income per Share $.01 $.03 FFO (1)
$1,007,000 $1,096,000 FFO per Share (1) $.09 $.11 Weighted Average
Shares Outstanding 10,606,000 10,167,000 For the Nine Months Ended
9/30/07 9/30/06 Total Revenues $30,123,000 $29,750,000 Total
Expenses $27,337,000 $26,216,000 Net Income $2,876,000 $3,635,000
Net Income per Share $.27 $.36 FFO (1) $5,482,000 $6,079,000 FFO
per Share (1) $.52 $.61 Weighted Average Shares Outstanding
10,486,000 10,039,000 (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 bases. 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, 2007 and 2006 is
calculated as follows: Three Months Nine Months 9/30/07 9/30/06
9/30/07 9/30/06 Net Income $110,000 $276,000 $2,876,000 $3,635,000
Gain on Sales of Depreciable Assets (23,000) (41,000) (90,000)
(100,000) Depreciation Expense 920,000 861,000 2,696,000 2,544,000
FFO $1,007,000 $1,096,000 $5,482,000 $6,079,000 The following are
the cash flows provided by (used in) operating, investing and
financing activities for the nine months ended September 30, 2007
and 2006: 9/30/07 9/30/06 Operating Activities ($70,000) $3,239,000
Investing Activities (13,583,000) (4,051,000) Financing Activities
12,818,000 (3,168,000) Samuel A. Landy, President, stated, "As a
hedge against rising inflation UMH holds a relatively small
derivative position based on the 10-year treasury note, that as a
result of the recent market turmoil resulted in a $500,000 loss
this past quarter. Additionally, our securities portfolio and our
interest rate swaps both moved against us this quarter. Sales of
manufactured homes were also weaker this quarter, down 4.7% versus
the third quarter of 2006. All of these factors contributed to
these results. However, we feel there is reason for optimism
regarding future results as year to date we have experienced a
slight increase in occupancy of 69 sites or approximately 1%. Over
the previous five years, occupancy at our communities declined from
approximately 90% in 2000 to approximately 82% in 2006. The
availability of liberal terms on conventional housing loans created
a very difficult market for land-leased manufactured home
communities. That has now changed and we feel our competitive
position going forward is enhanced. We are experiencing increased
demand in the rental market and are in the process of meeting that
demand. Several of our communities are currently under expansion,
which should be completed by year end. UMH maintains substantial
cash and borrowing power should further opportunities arise." UMH
Properties, Inc., a publicly-owned real estate investment trust,
owns and operates twenty-eight manufactured home communities
located in New Jersey, New York, Pennsylvania, Ohio and Tennessee.
In addition, the Company owns a portfolio of REIT securities.
DATASOURCE: UMH Properties, Inc. CONTACT: Rosemarie Faccone, or
Susan Jordan, both of UMH Properties, Inc., +1-732-577-9997
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