News Details

FREEHOLD, N.J., Nov. 7 /PRNewswire-FirstCall/ -- UMH Properties, Inc. (NYSE Alternext US: UMH) reported net income of $1,201,000 or $0.11 per share for the quarter ended September 30, 2008, as compared to $110,000 or $0.01 per share for the quarter ended September 30, 2007 and $2,407,000 or $0.22 per share for the nine months ended September 30, 2008, as compared to $2,876,000 or $0.27 per share for the nine months ended September 30, 2007.

A summary of significant financial information for the three months and nine months ended September 30, 2008 and 2007 is as follows:

                                              For the Three Months Ended
                                             9/30/08              9/30/07

    Total Revenues                         $10,240,000          $9,971,000
    Total Expenses                          $9,049,000          $9,884,000
    Net Income                              $1,201,000            $110,000
    Net Income per Share                          $.11                $.01
    FFO(1)                                  $2,209,000          $1,007,000
    FFO per Share(1)                              $.20                $.09
    Weighted Average Shares Outstanding     10,916,000          10,606,000


                                              For the Nine Months Ended
                                             9/30/08              9/30/07

    Total Revenues                         $29,015,000         $30,123,000
    Total Expenses                         $26,638,000         $27,337,000
    Net Income                              $2,407,000          $2,876,000
    Net Income per Share                          $.22                $.27
    FFO(1)                                  $5,427,000          $5,482,000
    FFO per Share(1)                              $.50                $.52
    Weighted Average Shares Outstanding     10,845,000          10,486,000


    (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, 2008 and 2007 is calculated as follows:

                                 Three Months              Nine Months
                              9/30/08     9/30/07      9/30/08     9/30/07

    Net Income              $1,201,000    $110,000   $2,407,000  $2,876,000
    Gain on Sales of
     Depreciable Assets         (9,000)    (23,000)     (30,000)    (90,000)
    Depreciation Expense     1,017,000     920,000    3,050,000   2,696,000

    FFO                     $2,209,000  $1,007,000   $5,427,000  $5,482,000


    The following are the cash flows provided by (used in) operating,
investing and financing activities for the nine months ended September 30,
2008 and 2007:

                                             9/30/08              9/30/07

    Operating Activities                   $6,747,000             ($70,000)
    Investing Activities                  (11,169,000)         (13,583,000)
    Financing Activities                    4,507,000           12,818,000

Included in net income and funds from operations for the nine months ended September 30, 2008, are a non-cash writedown of $302,000 for a stock investment that has declined in price and a $304,000 loss which was taken on derivative positions in U.S. Treasuries intended to hedge against rising interest rates. The Company has terminated the derivative positions in U.S. treasuries. These two items negatively impacted earnings by approximately $0.06 per share.

Samuel A. Landy, President, stated, "I am pleased with our third quarter results. We continue to implement our business plan to provide quality, affordable housing. While the U.S. economy is currently in the midst of a recession, manufactured housing provides the basic need of affordable housing. Historically, our property type has not been as adversely affected as others during economic contraction. We believe that, given the end of sub-prime conventional home lending, we should see increased demand for manufactured housing."

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.