FREEHOLD, N.J., May 7, 2015 /PRNewswire/ -- UMH Properties, Inc. (NYSE: UMH) reported Core Funds from Operations (Core FFO) of $3,159,000 or $0.13 per diluted share for the quarter ended March 31, 2015, as compared to $2,425,000 or $0.11 per diluted share for the quarter ended March 31, 2014. Normalized Funds from Operations (Normalized FFO), was $3,226,000 or $0.13 per diluted share for the quarter ended March 31, 2015, as compared to $1,916,000 or $0.09 per diluted share for the quarter ended March 31, 2014.
A summary of significant financial information for the three months ended March 31, 2015 and 2014 is as follows:
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| For the Three Months Ended |
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| March 31, |
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| 2015 |
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| 2014 |
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| Total Income | $ | 18,344,000 |
| $ | 15,849,000 |
| Total Expenses | $ | 16,370,000 |
| $ | 15,101,000 |
| Gain on Securities Transactions, net | $ | 58,000 |
| $ | 508,000 |
| Net Loss Attributable to Common Shareholders | $ | (1,171,000) |
| $ | (1,321,000) |
| Net Loss Attributable to Common Shareholders per Diluted Common Share | $ | (0.05) |
| $ | (0.06) |
| Core FFO (1) | $ | 3,159,000 |
| $ | 2,425,000 |
| Core FFO (1) per Diluted Common Share | $ | 0.13 |
| $ | 0.11 |
| Normalized FFO (1) | $ | 3,226,000 |
| $ | 1,916,000 |
| Normalized FFO (1) per Diluted Common Share | $ | 0.13 |
| $ | 0.09 |
| Weighted Average Diluted Shares Outstanding |
| 24,841,000 |
|
| 21,307,000 |
A summary of significant balance sheet information as of March 31, 2015 and December 31, 2014 is as follows:
| March 31, 2015 |
| December 31, 2014 |
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Total Assets | $ 491,321,000 |
| $ 478,269,000 |
Securities Available for Sale at Fair Value | $ 67,918,000 |
| $ 63,556,000 |
Mortgages Payable | $ 221,964,000 |
| $ 182,671,000 |
Loans Payable | $ 47,630,000 |
| $ 77,439,000 |
Total Shareholders' Equity | $ 211,912,000 |
| $ 208,827,000 |
Samuel A. Landy, President and CEO, commented on the results of the first quarter of 2015:
"We are pleased with the progress achieved during the quarter. Normalized FFO was $3.2 million or $0.13 per diluted share for the first quarter of 2015, compared to $1.9 million or $0.09 per diluted share in the prior year period, representing an increase of 44% on a per share basis. Community Net Operating Income (NOI) increased 28% to $8.4 million for the first quarter of 2015, as compared to $6.6 million for the same period in 2014. This growth in earnings has been driven by our occupancy gains as well as our community acquisitions. Overall occupancy increased 150 basis points from 80.8% in the first quarter of 2014 to 82.3% currently. Same store occupancy increased 130 basis points from 81.7% to 83.0% currently. Over the prior year period, same store revenue increased 8.2% and expenses decreased 0.9%. This coupled with our increase in same store occupancy resulted in a very strong increase in same store community NOI of 19.2%. Our year over year 19.2% same store community NOI represents solid evidence that our on-going program of acquiring communities and upgrading them is working. Community operating expenses for the quarter were 51.2% of rental and related income, representing a 460 basis point improvement over the prior year period. As we noted in the past, our expense ratio will continue to improve as we upgrade and integrate our acquisitions."
"During the quarter, we continued to grow our property portfolio by purchasing one Pennsylvania community containing 141 developed homesites for a purchase price of $3.8 million, and subsequent to quarter end, we acquired two additional Pennsylvania communities containing a total of 324 developed homesites for an aggregate purchase price of $5.3 million. We continue to seek acquisitions in our target markets and in addition to the acquisitions completed in 2015 thus far, we have a definitive agreement to purchase an additional Pennsylvania community containing 158 developed homesites for approximately $3.5 million. This acquisition is anticipated to close during the second quarter of 2015. We are currently in various stages of negotiations for additional community acquisitions."
"We have successfully completed our previously announced financings and, including one loan which closed on April 1, 2015, we obtained ten Freddie Mac mortgage loans for total proceeds of approximately $57.7 million. These loans have 10-year maturities and principal repayments based on 30-year amortization schedules. Interest on these mortgages are at a weighted-average fixed rate of 3.87%. The entrance of Freddie Mac into our sector and the favorable financing terms obtained will allow us to continue to refinance our communities and execute our growth strategy for the long-term benefit of our shareholders."
UMH Properties, Inc. will host its First Quarter 2015 Financial Results Webcast and Conference Call. Senior management will discuss the results, current market conditions and future outlook on Friday, May 8, 2015 at 10:00 a.m. Eastern Time.
The Company's 2015 first quarter financial results being released herein will be available on the Company's website at www.umh.com in the "Financial Information and Filings" section under the "Investors" tab.
To participate in the webcast, select the "Investors" tab at the top of the company's website at www.umh.com, then select the microphone icon. Interested parties can also participate via conference call by calling toll free 888-317-6016 (domestically) or 412-317-6016 (internationally).
The replay of the conference call will be available at 12:00 p.m. Eastern Time on Friday, May 8, 2015. It will be available until August 1, 2015, and can be accessed by dialing toll free 877-344-7529 (domestically) and 412-317-0088 (internationally) and entering the passcode 10061574. A transcript of the call and the webcast replay will be available at the company's website, www.umh.com under the "Investors" tab.
UMH Properties, Inc., which was organized in 1968, is a public equity REIT that owns and operates ninety-one manufactured home communities containing approximately 15,500 developed homesites. These communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana and Michigan. In addition, the Company owns a portfolio of REIT securities.
Certain statements included in this press release which are not historical facts may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, the Company can provide no assurance those expectations will be achieved. Factors and risks that could cause actual results or events to differ materially from expectations are contained in the Company's annual report on Form 10-K and described from time to time in the Company's other filings with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.
(1) Non-GAAP Information: We assess and measure our overall operating results based upon an industry performance measure referred to as Funds From Operations (FFO), which management believes is a useful indicator of our operating performance. FFO is used by industry analysts and investors as a supplemental operating performance measure of a REIT. FFO, as defined by The National Association of Real Estate Investment Trusts (NAREIT), represents Net Income (Loss) Attributable to Common Shareholders, as defined by accounting principles generally accepted in the United States of America (US GAAP), excluding Extraordinary Items, as defined under US GAAP, Gains or Losses from sales of previously depreciated real estate assets, Impairment Charges related to depreciable real estate assets, plus certain non-cash items such as Real Estate Asset Depreciation and Amortization. NAREIT created FFO as a non-US GAAP supplemental measure of REIT operating performance. We define Core Funds From Operations (Core FFO) as FFO plus Acquisition Costs. We define Normalized Funds From Operations (Normalized FFO) as Core FFO excluding gains and losses realized on securies investments and and certain one-time charges. FFO, Core FFO and Normalized FFO should be considered as supplemental measures of operating performance used by REITs. FFO, Core FFO and Normalized FFO exclude historical Cost Depreciation as an expense and may facilitate the comparison of REITs which have a different cost basis. The items excluded from FFO, Core FFO and Normalized FFO are significant components in understanding the Company's financial performance.
FFO, Core FFO and Normalized FFO (i) do not represent Cash Flow from Operations as defined by US GAAP; (ii) should not be considered as an alternative to Net Income as a measure of operating performance or to Cash Flows from Operating, Investing and Financing activities; and (iii) are not alternatives to Cash Flow as a measure of liquidity. FFO, Core FFO and Normalized FFO, as calculated by the Company, may not be comparable to similarly titled measures reported by other REITs.
The Company's FFO, Core FFO and Normalized FFO for the three months ended March 31, 2015 and 2014 are calculated as follows:
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| Three Months Ended |
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| 3/31/15 |
| 3/31/14 |
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Net Income (Loss) Attributable to Common Shareholders |
| $(1,171,000) | $(1,321,000) |
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Depreciation Expense |
| 4,229,000 | 3,438,000 |
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(Gain) Loss on Sales of Depreciable Assets |
| (5,000) | 22,000 |
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FFO Attributable to Common Shareholders |
| 3,053,000 |
| 2,139,000 |
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Add: Acquisition Costs |
| 106,000 |
| 285,000 |
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Core FFO Attributable to Common Shareholders |
| 3,159,000 |
| 2,424,000 |
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Less: Gain on Sale of Securities Transactions, net |
| (58,000) |
| (508,000) |
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Add: Settlement of Litigation |
| 125,000 | - |
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Normalized FFO Attributable to Common Shareholders |
| $3,226,000 |
| $1,916,000 |
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The following are the cash flows provided (used) by operating, investing and financing activities for the three months ended March 31, 2015 and 2014:
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| Three Months Ended |
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| 3/31/15 |
| 3/31/14 |
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Operating Activities |
| $7,245,000 | $5,834,000 |
Investing Activities |
| (12,154,000) | (11,004,000) |
Financing Activities |
| 7,902,000 | 5,316,000 |
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SOURCE UMH Properties, Inc.