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UMH Properties, Inc. Reports Year-End Earnings


FREEHOLD, N.J., March 13 /PRNewswire-FirstCall/ -- UMH Properties, Inc. (Amex: UMH) reported net income of $5,840,000 or $0.58 a share for the year ended December 31, 2006, as compared to $6,990,000 or $0.74 a share for the year ended December 31, 2005.

    A summary of significant financial information for the years ended
December 31, 2006 and 2005, and for the quarters ended December 31, 2006 and
2005, is as follows:

                                            For the Years Ended December 31,

                                                 2006               2005

    Total Revenues                          $  42,645,000      $  39,340,000
    Total Expenses                          $  36,963,000      $  32,393,000
    Net Income                              $   5,840,000      $   6,990,000
    Net Income per Share                    $         .58      $         .74
    FFO  (1)                                $   9,097,000      $  10,301,000
    FFO per Share  (1)                      $         .90      $        1.09
    Weighted Average Shares Outstanding        10,094,000          9,473,000

                                           For the Quarters Ended December 31,

                                                 2006               2005

    Total Revenues                          $  12,895,000      $  10,232,000
    Total Expenses                          $  10,747,000      $   8,808,000
    Net Income                              $   2,206,000      $   1,446,000
    Net Income per Share                    $         .22      $         .15
    FFO  (1)                                $   3,019,000      $   2,237,000
    FFO per Share  (1)                      $         .29      $         .23
    Weighted Average Shares Outstanding        10,260,000          9,722,000

(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 is calculated as follows:

                                For the Years Ended    For the Quarters Ended
                               12/31/06     12/31/05    12/31/06    12/31/05

    Net Income                $5,840,000   $6,990,000  $2,206,000  $1,446,000
    Gain on Sales of
     Depreciable Assets        (158,000)     (43,000)    (58,000)    (23,000)
    Depreciation Expense       3,415,000    3,354,000     871,000     814,000

    FFO                       $9,097,000  $10,301,000  $3,019,000  $2,237,000

    The following are the cash flows provided by (used in) operating,
investing and financing activities for the years ended December 31, 2006 and

                                        2006                 2005

    Operating Activities            $ 4,162,000         $   3,035,000
    Investing Activities            (2,592,000)          (13,415,000)
    Financing Activities            (4,121,000)             6,161,000

Samuel A. Landy, President, stated, "Income and expense from our securities portfolio, our derivative position and our interest rate swaps are volatile. In 2006, we recorded a gain on securities transactions of $267,000, as compared to $1,233,000 for 2005, a decrease of $966,000. This was primarily due to the $823,000 write-down to the carrying value of securities which were considered other than temporarily impaired. The Company also realized a substantial portion of the unrealized gain in the securities portfolio in 2005. The fair value of the Company's interest rate swaps decreased interest expense by $774,000 in 2005, while increasing it by $68,000 in 2006, a swing of $842,000."

Mr. Landy further stated, "Our sales of manufactured homes into our communities have continued to grow, generating increased rental revenue and upgrading our communities. Sales reached a new high of $15.8 million, an increase of 27% over the 2005 amount of $12.4 million. UMH continues to look for investment opportunities to enhance our operations. During 2006, 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, both of UMH Properties, Inc., +1-732-577-9997

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