FREEHOLD, N.J., Nov. 9 /PRNewswire-FirstCall/ -- UMH Properties,
Inc. (NYSE Amex: UMH) reported that funds from operations (FFO),
excluding non-cash impairment charges and other losses on
securities transactions, amounted to $6,663,000 or $.59 per share
for the nine months ended September 30, 2009, as compared to
$6,012,000 or $.55 per share for the nine months ended September
30, 2008. Net income amounted to $1,340,000 or $.12 per share for
the three months ended September 30, 2009, as compared to
$1,201,000 or $.11 per share for the three months ended September
30, 2008. Net income amounted to $1,420,000 or $.13 per share for
the nine months ended September 30, 2009, as compared to $2,407,000
or $.22 per share for the nine months ended September 30, 2008. Net
cash provided by operating activities for the nine months ended
September 30, 2009 was $9,112,000 as compared to $6,747,000 for the
nine months ended September 30, 2008. A summary of significant
financial information for the three months and nine months ended
September 30, 2009 and 2008 is as follows: For the Three Months
Ended 9/30/09 9/30/08 ----------- ----------- Total Revenues
$9,857,000 $10,240,000 Total Expenses $8,517,000 $9,049,000 Net
Income $1,340,000 $1,201,000 Net Income per Share $.12 $.11 FFO (1)
$2,357,000 $2,209,000 FFO per Share (1) $.21 $.20 Weighted Average
Shares Outstanding 11,493,000 10,916,000 For the Nine Months Ended
9/30/09 9/30/08 ----------- ----------- Total Revenues $25,432,000
$29,015,000 Total Expenses $23,990,000 $26,638,000 Net Income
$1,420,000 $2,407,000 Net Income per Share $.13 $.22 FFO (1)
$4,511,000 $5,427,000 FFO per Share (1) $.40 $.50 Weighted Average
Shares Outstanding 11,260,000 10,845,000 (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 for the three and nine months ended
September 30, 2009 and 2008 is calculated as follows: Three Months
Nine Months ------------ ----------- 9/30/09 9/30/08 9/30/09
9/30/08 ---------- ---------- ---------- ---------- Net Income $1,
340,000 $1,201,000 $1,420,000 $2,407,000 (Gain) Loss on Sales of
Depreciable Assets - (9,000) 22,000 (30,000) Depreciation Expense
1,017,000 1,017,000 3,069,000 3,050,000 --------- ---------
--------- --------- FFO $2, 357,000 $2,209,000 $4,511,000
$5,427,000 ========== ========== ========== ========== The
following are the cash flows provided by (used in) operating,
investing and financing activities for the nine months ended
September 30, 2009 and 2008: 9/30/09 9/30/08 ------------
------------- Operating Activities $9,112,000 $6,747,000 Investing
Activities (7,409,000) (11,169,000) Financing Activities
(1,433,000) 4,507,000 Samuel A. Landy, President, stated, "In this
challenging operating environment, UMH continues to perform and
deliver reliable earnings. Our adjusted FFO increased 7% from $.55
per share for the nine months ended September 30, 2008 to $.59 per
share for the nine months ended September 30, 2009. Income from
community operations increased 7% from $9,269,000 for the nine
months ended September 30, 2008 to $9,908,000 for the nine months
ended September 30, 2009. Occupancy has remained relatively stable
at approximately 80%. The Company has been increasing rental rates
and focusing on controlling costs. Cash provided from operating
activities increased 35% from $6,747,000 for the nine months ended
September 30, 2008 to $9,112,000 for the nine months ended
September 30 2009. Our balance sheet remains strong. We have
approximately $3 million in cash, over $30 million in REIT
securities subject to margin and bank loans of $10 million, and a
low leverage ratio. The fair value of our securities portfolio
increased by approximately $7,000,000 over the past nine months. We
now have an unrealized gain of $1,200,000 as compared to an
unrealized loss of $5,700,000 at December 31, 2008. Our current
earnings projections reflect favorably on the coverage for our
dividend. Our home sales division remained a source of weakness
down 41% over the nine month period. While the pace of job losses
in the US has recently slowed, our home sales have clearly been
affected by the rise in unemployment. However, over the longer term
we remain encouraged. Site-built homeownership rates are trending
lower as mortgage lenders are returning to realistic underwriting
standards. The tax credit for first-time homebuyers has been
extended and expanded to now include a credit for certain existing
homeowners who purchase a new home. Conventional new housing starts
remain at historically low levels. This will allow the excess
housing inventory to be absorbed. As our nation's economic outlook
improves demand for affordable housing will increase." 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: Susan Jordan of UMH
Properties, Inc., +1-732-577-9997
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