FREEHOLD, N.J., Aug. 9 /PRNewswire-FirstCall/ -- UMH Properties, Inc.
(Amex: UMH) reported net income of $1,928,000 or $0.18 for the three months
ended June 30, 2007, as compared to $1,218,000 or $0.12 for the three months
ended June 30, 2006, and $2,766,000 or $0.27 a share for the six months ended
June 30, 2007, as compared to $3,358,000 or $0.34 a share for the six months
ended June 30, 2006.
A summary of significant financial information for the three months and
six months ended June 30, 2007 and 2006 is as follows:
For the Three Months Ended
6/30/07 6/30/06
Total Revenues $11,351,000 $10,344,000
Total Expenses $ 9,457,000 $ 9,169,000
Net Income $ 1,928,000 $ 1,218,000
Net Income per Share $ .18 $ .12
FFO (1) $ 2,782,000 $ 2,033,000
FFO per Share (1) $ .27 $ .20
Weighted Average Shares
Outstanding 10,491,000 10,063,000
For the Six Months Ended
6/30/07 6/30/06
Total Revenues $20,151,000 $19,856,000
Total Expenses $17,452,000 $16,557,000
Net Income $ 2,766,000 $ 3,358,000
Net Income per Share $ .27 $ .34
FFO (1) $ 4,475,000 $ 4,982,000
FFO per Share (1) $ .43 $ .50
Weighted Average Shares
Outstanding 10,428,000 9,979,000
(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 three and six months ended June 30, 2007 and
2006 is calculated as follows:
Three Months Six Months
6/30/07 6/30/06 6/30/07 6/30/06
Net Income $1,928,000 $1,218,000 $2,766,000 $3,358,000
(Gain) Loss on Sales of
Depreciable Assets (35,000) (43,000) (67,000) (59,000)
Depreciation Expense 889,000 858,000 1,776,000 1,683,000
FFO $2,782,000 $2,033,000 $4,475,000 $4,982,000
The following are the cash flows provided (used) by operating, investing
and financing activities for the six months ended June 30, 2007 and 2006:
6/30/07 6/30/06
Operating Activities ($1,060,000) $3,352,000
Investing Activities (1,811,000) (2,764,000)
Financing Activities 2,331,000 (3,369,000)
Samuel A. Landy, President, stated, "Income and expense from our
securities portfolio, our derivative position, our interest rate swaps and our
home sales are volatile. Over the past few years, we have been hurt by the
surge in the conventional housing market. Occupancy decreased from 84% at
June 30, 2006 to 82% at June 30, 2007. We view the recent downturn in
conventional housing and sub-prime lending as leading indicators that demand
for affordable housing will return to historic levels. Although we have seen
signs that occupancy is increasing, we are disappointed that we have not seen
a quicker return to affordability. 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 in
2007. 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, both of UMH Properties, Inc., +1-732-577-9997