News Details

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.

SOURCE UMH Properties, Inc.