FREEHOLD, N.J., Aug. 9 /PRNewswire-FirstCall/ -- UMH Properties, Inc.
(Amex: UMH) reported net income of $3,358,000 or $0.34 a share for the six
months ended June 30, 2006, as compared to $3,285,000 or $0.35 a share for the
six months ended June 30, 2005.
A summary of significant financial information for the three months and
six months ended June 30, 2006 and 2005 is as follows:
For the Three Months Ended
6/30/06 6/30/05
Total Revenues $10,344,000 $9,317,000
Total Expenses $9,169,000 $8,480,000
Net Income $1,218,000 $828,000
Net Income per Share $.12 $.09
FFO (1) $2,033,000 $1,711,000
FFO per Share (1) $.20 $.18
Weighted Average Shares Outstanding 10,063,000 9,406,000
For the Six Months Ended
6/30/06 6/30/05
Total Revenues $19,856,000 $17,860,000
Total Expenses $16,557,000 $14,560,000
Net Income $3,358,000 $3,285,000
Net Income per Share $.34 $.35
FFO (1) $4,982,000 $5,002,000
FFO per Share (1) $.50 $.54
Weighted Average Shares Outstanding 9,979,000 9,306,000
(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 six months ended June 30, 2006 and
2005 is calculated as follows:
Three Months Six Months
6/30/06 6/30/05 6/30/06 6/30/05
Net Income $1,218,000 $828,000 $3,358,000 $3,285,000
(Gain) Loss on Sales
of Depreciable Assets (43,000) 8,000 (59,000) 15,000
Depreciation Expense 858,000 875,000 1,683,000 1,702,000
FFO $2,033,000 $1,711,000 $4,982,000 $5,002,000
The following are the cash flows provided (used) by operating, investing
and financing activities for the six months ended June 30, 2006 and 2005:
6/30/06 6/30/05
Operating Activities $3,351,824 $2,712,523
Investing Activities (2,763,962) (7,125,403)
Financing Activities (3,368,603) 1,600,183
Samuel A. Landy, President, stated, "In 2006, we recorded a loss on sales
of securities available for sale of $105,000, as compared to a gain of
$955,000 for 2005, a decrease of over $1,000,000. This was primarily due to
the write-down to the carrying value of securities which were considered other
than temporarily impaired. Manufactured home community occupancy for UMH is
stable. Our sales of manufactured homes into our communities have continued
to generate large increases, growing at a rate of 56% over the prior year.
This has generated increased rental revenue and upgraded our communities."
Mr. Landy further stated, "UMH is currently looking for investment
opportunities. In the first quarter, we purchased a 270-space community in
Lebanon, Tennessee. We are in the process of expansions at several of our
communities. UMH has substantial cash and borrowing power available 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.
SOURCE UMH Properties, Inc.
Contact: Rosemarie Faccone or Susan Jordan, UMH Properties, Inc., +1-732-577-9997