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
2005:
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