FREEHOLD, N.J., May 9 /PRNewswire-FirstCall/ -- UMH Properties, Inc.
(Amex: UMH) reported net income of $2,141,000 or $0.22 a share for the quarter
ended March 31, 2006, as compared to $2,456,000 or $0.27 a share for the
quarter ended March 31, 2005.
A summary of significant financial information for the three months ended
March 31, 2006 and 2005 is as follows:
For the Three Months Ended
3/31/06 3/31/05
Total Revenues $9,512,000 $8,543,000
Total Expenses $7,389,000 $6,080,000
Net Income $2,141,000 $2,456,000
Net Income per Share $.22 $.27
FFO (1) $2,949,000 $3,291,000
FFO per Share (1) $.30 $.36
Weighted Average Shares Outstanding 9,898,000 9,213,000
(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
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 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 quarter ended March 31, 2006 and 2005 is
calculated as follows:
2006 2005
Net Income $2,141,000 $2,456,000
(Gain) Loss on Sales of
Depreciable Assets (17,000) 8,000
Depreciation Expense 825,000 827,000
FFO $2,949,000 $3,291,000
The following are the cash flows provided (used) by operating, investing
and financing activities for the three months ended March 31, 2006 and 2005:
2006 2005
Operating Activities $1,927,000 $1,575,000
Investing Activities (1,869,000) (5,040,000)
Financing Activities (711,000) 1,156,000
Samuel A. Landy, President, stated, "The business of UMH Properties, Inc.
is the ownership and operation of land leased manufactured housing communities
and the sale of manufactured homes into these communities. Manufactured home
community occupancy for UMH is stable. Our sales of manufactured homes into
our communities are increasing. UMH also maintains a portfolio of REIT
securities, engages in hedging transactions involving the sale of ten-year
treasury notes, and maintains interest rate swaps."
Mr. Landy further stated, "In the first quarter of 2006, we recorded gains
on sales of securities available for sale of $314,000, as compared to $633,000
for the first quarter of 2005. Accounting for our interest rate swaps
required us to reduce interest expense for the quarter by $219,000 as compared
to $546,000 for the first quarter of 2005. Income and expense from our
securities portfolio, our derivative position and our interest rate swaps are
volatile. UMH has substantial cash and borrowing power available should
investment opportunities arise."
UMH, a publicly owned REIT, 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.
SOURCE UMH Properties, Inc.
-0- 05/09/2006
/CONTACT: Rosemarie Faccone or Susan Jordan, UMH Properties, Inc.,
+1-732-577-9997/
CO: UMH Properties, Inc.
ST: New Jersey
IN: RLT FIN
SU: ERN
PD
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2727 05/09/200614:39 EDThttp://www.prnewswire.com