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| 8-K - 8-K - UMH PROPERTIES, INC. | d31373.htm |
FOR IMMEDIATE RELEASE
May 8, 2014
Contact: Susan Jordan
732-577-9997
UMH PROPERTIES, INC. REPORTS 1st QUARTER 2014 EARNINGS
FREEHOLD, NJ, May 8, 2014........ UMH Properties, Inc. (NYSE:UMH) reported Core Funds from Operations Attributable to Common Shareholders (Core FFO) of $2,425,000 or $0.11 per diluted share for the quarter ended March 31, 2014, as compared to $5,254,000 or $0.30 per diluted share for the quarter ended March 31, 2013. Excluding gains realized from the sale of securities during the quarter, Core FFO was $1,917,000 or $0.09 per diluted share for the quarter ended March 31, 2014, as compared to $1,944,000 or $0.11 per diluted share for the quarter ended March 31, 2013.
A summary of significant financial information for the three months ended March 31, 2014 and 2013 is as follows:
For the Three Months Ended
March 31,
2014 | 2013 | |||||
Total Income | $ | 15,849,000 | $ | 13,426,000 | ||
Total Expenses | $ | 15,101,000 | $ | 12,241,000 | ||
Income from Community Operations (1) | $ | 6,559,000 | $ | 5,695,000 | ||
Gain on Securities Transactions, net | $ | 508,000 | $ | 3,310,000 | ||
Net Income (Loss) Attributable to Common Shareholders | $ | (1,321,000) | $ | 2,260,000 | ||
Net Income (Loss) Attributable to Common Shareholders per Diluted Common Share | $ | (0.06) | $ | 0.13 | ||
Core FFO (1) | $ | 2,425,000 | $ | 5,254,000 | ||
Core FFO (1) per Diluted Common Share | $ | 0.11 | $ | 0.30 | ||
Core FFO (1) Excluding Gains on Securities Transactions | $ | 1,917,000 | $ | 1,944,000 | ||
Core FFO (1) Excluding Gains on Securities Transactions per Diluted Common Share | $ | 0.09 | $ | 0.11 | ||
Weighted Average Diluted Shares Outstanding | 21,307,000 | 17,502,000 |
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A summary of significant balance sheet information as of March 31, 2014 and December 31, 2013 is as follows:
March 31, 2014 | December 31, 2013 | ||
Total Assets | $ 436,140,000 | $ 407,980,000 | |
Securities Available for Sale at Fair Value | $ 60,701,000 | $ 59,255,000 | |
Mortgages Payable | $ 177,641,000 | $ 160,640,000 | |
Loans Payable | $ 53,623,000 | $ 49,119,000 | |
Total Shareholders’ Equity | $ 196,868,000 | $ 190,586,000 |
Samuel A. Landy, President and CEO, commented on the results of the first quarter of 2014:
“Core FFO excluding gains on securities transactions was approximately $1.9 million for both the first quarter of 2014 and the prior year period. Income from community operations increased to $6.6 million for the first quarter of 2014, as compared to $5.7 million for the same period in 2013. Overall occupancy has remained stable at approximately 81.0%. Same store occupancy has increased 100 basis points from 80.8% in the first quarter of 2013 to 81.8% currently. Occupancy in rental units continues to be strong and is currently at 91.1%. We anticipate adding more rental units throughout 2014 as demand dictates.”
“Sales of manufactured homes were disappointing. The severe winter weather experienced by the Northeast hampered home sales, as well as increased certain operating expenses. We anticipate that second quarter sales will show an improvement as purchases delayed by bad weather proceed.”
“We continue to implement our business plan of buying communities and upgrading the acquired communities to create additional income and value over the long term. In March 2014, we acquired 8 manufactured home communities for approximately $25 million. These 8 all-age communities total 1,018 sites and are situated on approximately 270 acres. Occupancy at these communities average 70% which will allow for potential upside as we increase occupancy by upgrading the community, including the installation of new inventory and rental units. We anticipate additional acquisitions in 2014 and our current pipeline consists of six manufactured home communities with an aggregate purchase price of approximately $17.6 million.”
UMH Properties, Inc. will host its First Quarter 2014 Financial Results Webcast and Conference Call. Senior management will discuss the results, current market conditions and future outlook on Friday, May 9, 2014 at 10:00 a.m. Eastern Time.
The Company’s 2014 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.
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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 9, 2014. It will be available until August 1, 2014, and can be accessed by dialing toll free 877-344-7529 (domestically) and 412-317-0088 (internationally) and entering the passcode 10042566. 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 eighty-two manufactured home communities containing approximately 14,500 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. Any such forward-looking statements are based on the Company’s current expectations and involve various risks and uncertainties. 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.
Notes:
(1) Non-US GAAP Information: FFO is defined by the National Association of Real Estate Investment Trusts ("NAREIT") as net income applicable to common shareholders, excluding gains or losses from sales of depreciable assets, plus real estate-related depreciation and amortization. We define Core FFO as FFO plus acquisition costs. We define Income from Community Operations as Rental and Related Income less Community Operating Expenses. FFO and Core FFO per diluted common share are defined as FFO and Core FFO divided by weighted average diluted common shares outstanding. FFO and Core FFO per diluted common share should be considered as supplemental measures of operating performance used by real estate investment trusts (REITs). FFO and Core FFO per diluted common share exclude historical cost depreciation as an expense and may facilitate the comparison of REITs which have different cost basis. The items excluded from FFO and Core FFO per diluted common share are significant components in understanding the Company’s financial performance.
FFO and Core FFO per diluted common share (A) do not represent cash flow from operations as defined by accounting principles generally accepted in the United States of America; (B) 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 (C) are not alternatives to cash flow as a measure of liquidity. FFO and Core FFO per diluted common share, as calculated by the Company, may not be comparable to similarly titled measures reported by other REITs.
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The Company’s FFO and Core FFO for the three months ended March 31, 2014 and 2013 are calculated as follows:
For the Three Months Ended |
| |||||
3/31/14 | 3/31/13 | |||||
Net Income (Loss) Attributable to Common Shareholders | $(1,321,000) | $2,260,000 | ||||
Depreciation Expense | 3,438,000 | 2,390,000 | ||||
Loss on Sales of Depreciable Assets | 23,000 | 13,000 | ||||
FFO Attributable to Common Shareholders | 2,140,000 | 4,663,000 | ||||
Acquisition Costs | 285,000 | 591,000 | ||||
Core FFO Attributable to Common Shareholders | $2,425,000 | $5,254,000 | ||||
The Company’s Core FFO, excluding the net Gain on Sales of Securities Transactions, for the three months ended March 31, 2014 and 2013 are calculated as follows:
For the Three Months Ended |
| |||||
3/31/14 | 3/31/13 | |||||
Core FFO Attributable to Common Shareholders | $2,425,000 | $5,254,000 | ||||
Less: Gain on Sales of Securities Transactions, net | 508,000 | 3,310,000 | ||||
Core FFO, excluding net Gain on Sales of Securities Transactions, Attributable to Common Shareholders | $1,917,000 | $1,944,000 | ||||
The following are the cash flows provided (used) by operating, investing and financing activities for the three months ended March 31, 2014 and 2013:
2014 | 2013 | |||
Operating Activities | $5,834,000 | $1,678,000 | ||
Investing Activities | (11,004,000) | (59,836,000) | ||
Financing Activities | 5,316,000 | 55,609,000 |
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