EX-99 2 ex99.htm

 

 

  
 

 

Table of Contents

    

  Page
   
Financial Highlights 3
   
Consolidated Balance Sheets 4
   
Consolidated Statements of Income (Loss) 5
   
Consolidated Statement of Cash Flows 6
   
Reconciliation of Net Income to EBITDA and Net Loss Attributable to Common Shareholders to FFO, Core FFO and Normalized FFO 7
   
Market Capitalization, Debt and Coverage Ratios 8
   
Debt Analysis 9
   
Debt Maturity 10
   
Property Summary and Snapshot 11
   
Same Property Statistics 12
   
Acquisition Summary and Property Portfolio 13
   
Definitions 14
   
Press Release Dated May 9, 2016 15

 

UMH Properties, Inc. | First Quarter FY 2016 Supplemental Information

2 
 

 

Financial Highlights

(unaudited)

 

   Three Months Ended 
   3/31/2016   3/31/2015 
Operating Information          
Number of Communities   98    89 
Rental and Related Income  $21,786,180   $17,215,686 
Community Operating Expenses  $10,555,938   $8,812,489 
Community NOI  $11,230,242   $8,403,197 
Expense Ratio   48.5%   51.2%
Sales of Manufactured Homes   1,718,194    1,128,400 
Number of Homes Sold   41    24 
Number of Rentals Added   182    122 
Net Income  $1,906,469   $718,517 
Net Loss Attributable to Common Shareholders  $(883,278)  $(1,170,630)
EBITDA  $11,458,713   $8,083,076 
FFO  $4,620,476   $3,052,931 
Core FFO  $4,620,476   $3,159,062 
Normalized FFO  $4,388,471   $3,225,862 
           
Shares Outstanding and Per Share Data          
Weighted Average Shares Outstanding          
 Basic   27,117,889    24,796,898 
 Diluted   27,161,110    24,840,565 
Net Loss Attributable to Common Shareholders per Share -          
Basic and Diluted  $(0.03)  $(0.05)
FFO per Share-          
 Basic and Diluted  $0.17   $0.12 
Core FFO per Share-          
 Basic and Diluted  $0.17   $0.13 
Normalized FFO per Share-          
 Basic and Diluted  $0.16   $0.13 
           
Dividends per Common Share  $0.18   $0.18 
           
Balance Sheet          
Total Assets  $624,039,950   $488,079,074 
Total Liabilities  $374,487,550   $276,166,713 
           
Market Capitalization          
Total Debt  $360,595,790   $266,351,678 
Equity Market Capitalization  $269,584,412   $254,730,750 
Total Preferred Stock  $136,625,000   $91,595,000 
Total Market Capitalization  $766,805,202   $612,677,428 

 

UMH Properties, Inc. | First Quarter FY 2016 Supplemental Information

3 
 

 

Consolidated Balance Sheets

 

   March 31, 2016   December 31, 2015 
   (unaudited)     
ASSETS          
Investment Property and Equipment          
Land  $45,476,314   $45,477,814 
Site and Land Improvements   379,118,124    377,215,400 
Buildings and Improvements   20,337,939    20,307,097 
Rental Homes and Accessories   142,423,405    134,708,763 
Total Investment Property   587,355,782    577,709,074 
Equipment and Vehicles   14,072,224    13,697,460 
Total Investment Property and Equipment   601,428,006    591,406,534 
Accumulated Depreciation   (123,124,324)   (117,761,146)
Net Investment Property and Equipment   478,303,682    473,645,388 
           
Other Assets          
Cash and Cash Equivalents   7,914,718    6,535,897 
Securities Available for Sale at Fair Value   91,396,472    75,011,260 
Inventory of Manufactured Homes   15,393,496    14,311,410 
Notes and Other Receivables, net   19,183,127    20,028,574 
Prepaid Expenses and Other Assets   4,378,732    4,062,813 
Land Development Costs   7,469,723    6,722,048 
Total Other Assets   145,736,268    126,672,002 
           
TOTAL ASSETS  $624,039,950   $600,317,390 
           
LIABILITIES AND SHAREHOLDERS’ EQUITY          
Liabilities          
Mortgages Payable, net of Unamortized Debt Issuance Costs  $288,642,636   $283,049,802 
Other Liabilities          
Accounts Payable   3,537,169    2,816,290 
Loans Payable, net of Unamortized Debt Issuance Costs   71,953,154    57,862,206 
Accrued Liabilities and Deposits   6,471,281    6,696,577 
Tenant Security Deposits   3,883,310    3,654,090 
Total Other Liabilities   85,844,914    71,029,163 
Total Liabilities   374,487,550    354,078,965 
           
COMMITMENTS AND CONTINGENCIES          
           
Shareholders’ Equity:          
Series A - 8.25% Cumulative Redeemable Preferred Stock, Par Value $0.10 Per Share: 3,663,800 Shares Authorized, Issued and Outstanding as of March 31, 2016 and December 31, 2015, respectively   91,595,000    91,595,000 
Series B - 8.0% Cumulative Redeemable Preferred Stock, Par Value $0.10 Per Share: 2,000,000 Shares Authorized; 1,801,200 Shares Issued and Outstanding as of March 31, 2016 and December 31, 2015   45,030,000    45,030,000 
Common Stock – $0.10 Par Value Per Share: 62,000,000 Shares Authorized; 27,175,848 and 27,086,838 Shares Issued and Outstanding as of March 31, 2016 and December 31, 2015, respectively   2,717,585    2,708,684 
Excess Stock – $0.10 Par Value Per Share: 3,000,000 Shares Authorized; No Shares          
Issued or Outstanding as of March 31, 2016 and December 31, 2015, respectively   -0-    -0- 
Additional Paid-In Capital   104,444,675    109,629,260 
Accumulated Other Comprehensive Income (Loss)   6,432,933    (2,056,726)
Accumulated Deficit   (667,793)   (667,793)
Total Shareholders’ Equity   249,552,400    246,238,425 
           
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY  $624,039,950   $600,317,390 

 

UMH Properties, Inc. | First Quarter FY 2016 Supplemental Information

4 
 

 

Consolidated Statements of Income (Loss)

(unaudited)

 

   Three Months Ended 
   3/31/2016   3/31/2015 
INCOME:          
Rental and Related Income  $21,786,180   $17,215,686 
Sales of Manufactured Homes   1,718,194    1,128,400 
 TOTAL INCOME   23,504,374    18,344,086 
           
EXPENSES:          
Community Operating Expenses   10,555,938    8,812,489 
Cost of Sales of Manufactured Homes   1,313,928    880,670 
Selling Expenses   783,752    685,539 
General and Administrative Expenses   1,696,922    1,656,700 
Acquisition Costs   -0-    106,131 
Depreciation Expense   5,525,842    4,228,274 
 TOTAL EXPENSES   19,876,382    16,369,803 
           
OTHER INCOME (EXPENSE):          
Interest Income   408,876    478,333 
Dividend Income   1,455,535    1,094,778 
Gain on Sale of Securities Transactions, net   232,005    58,200 
Other Income   93,450    49,864 
Interest Expense   (3,933,477)   (2,941,654)
 TOTAL OTHER INCOME (EXPENSE)   (1,743,611)   (1,260,479)
          
Income before Gain on Sales of Investment Property and Equipment   1,884,381    713,804 
Gain on Sales of Investment Property and Equipment   22,088    4,713 
NET INCOME   1,906,469    718,517 
           
Less: Preferred Dividends    2,789,747    1,889,147 
           
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS  $(883,278)  $(1,170,630)

 

UMH Properties, Inc. | First Quarter FY 2016 Supplemental Information

5 
 

 

Consolidated Statements of Cash Flows

 (unaudited)

  

   Three Months Ended 
   3/31/2016   3/31/2015 
         
CASH FLOWS FROM OPERATING ACTIVITIES:          
Net Income  $1,906,469   $718,517 
Non-Cash Items Included in Net Income:          
Depreciation   5,525,842    4,228,274 
Amortization of Financing Costs   186,087    130,043 
Stock Compensation Expense   157,745    177,801 
Provision for Uncollectible Notes and Other Receivables   222,737    265,409 
Gain on Sales of Securities Transactions, net   (232,005)   (58,200)
Gain on Sales of Investment Property and Equipment   (22,088)   (4,713)
           
Changes in Operating Assets and Liabilities:          
Inventory of Manufactured Homes   (1,082,086)   1,742,190 
Notes and Other Receivables   622,710    347,490 
Prepaid Expenses   (315,919)   (696,099)
Accounts Payable   720,879    249,084 
Accrued Liabilities and Deposits   (260,441)   33,559 
Tenant Security Deposits   229,220    111,523 
Net Cash Provided by Operating Activities   7,659,150    7,244,878 
           
CASH FLOWS FROM INVESTING ACTIVITIES:          
Purchase of Manufactured Home Communities, net of Mortgages Assumed   -0-   (1,509,524)
Purchase of Investment Property and Equipment   (10,478,716)   (6,844,617)
Proceeds from Sales of Investment Property and Equipment   316,668    140,659 
Additions to Land Development Costs   (747,675)   (62,075)
Purchase of Securities Available for Sale   (8,116,664)   (4,566,259)
Proceeds from Sales of Securities Available for Sale   488,261    688,200 
Net Cash Used in Investing Activities   (18,538,126)   (12,153,616)
           
CASH FLOWS FROM FINANCING ACTIVITIES:          
Proceeds from Mortgages, net of Mortgages Assumed   7,200,000    44,985,000 
Net Proceeds (Payments) on Short Term Borrowings   14,118,911    (29,809,084)
Principal Payments of Mortgages and Loans   (1,696,752)   (7,982,550)
Financing Costs on Debt   (124,464)   (1,143,512)
Proceeds from Issuance of Common Stock, net of Reinvestments   225,458    7,680,628 
Proceeds from Exercise of Stock Options   71,725    52,910 
Preferred Dividends Paid   (3,194,404)   (1,889,147)
Common Dividends Paid, net of Reinvestments   (4,342,677)   (3,992,134)
Net Cash Provided by Financing Activities   12,257,797    7,902,111 
           
NET INCREASE IN CASH AND CASH EQUIVALENTS   1,378,821    2,993,373 
CASH AND CASH EQUIVALENTS – BEGINNING OF PERIOD   6,535,897    8,082,792 
CASH AND CASH EQUIVALENTS – ENDING OF PERIOD  $7,914,718   $11,076,165 
           

UMH Properties, Inc. | First Quarter FY 2016 Supplemental Information

6 
 

 

Reconciliation of Net Income to EBITDA and Net Loss Attributable

to Common Shareholders to FFO, Core FFO and Normalized FFO

(unaudited)

 

   Three Months Ended 
   3/31/2016   3/31/2015 
Reconciliation of Net Income to EBITDA          
           
Net Income  $1,906,469   $718,517 
Interest Expense   3,933,477    2,941,654 
Franchise Taxes   92,925    88,500 
Depreciation Expense   5,525,842    4,228,274 
Acquisition Costs   -0-    106,131 
           
EBITDA  $11,458,713   $8,083,076 
           
Reconciliation of Net Loss Attributable to Common Shareholders to Funds from Operations          
          
Net Loss Attributable to Common Shareholders  $(883,278)  $(1,170,630)
Depreciation Expense   5,525,842    4,228,274 
Gain on Sales of Depreciable Assets   (22,088)   (4,713)
           
Funds from Operations (“FFO”)   4,620,476    3,052,931 
           
Adjustments:          
Acquisition Costs   -0-    106,131 
           
Core Funds from Operations (“Core FFO”)   4,620,476    3,159,062 
           
Adjustments:          
Gain on Sale of Securities Transactions, net   (232,005)   (58,200)
Settlement of Memphis Mobile City Litigation   -0-    125,000 
          
 Normalized Funds From Operations (“Normalized FFO”)  $4,388,471   $3,225,862 

 

UMH Properties, Inc. | First Quarter FY 2016 Supplemental Information

7 
 

 

Market Capitalization, Debt and Coverage Ratios

(unaudited)

 

   Year to Date   Year Ended 
   3/31/2016   3/31/2015   12/31/2015 
Shares Outstanding   27,175,848    25,296,003    27,086,838 
Market Price Per Share  $9.92   $10.07   $10.12 
Equity Market Capitalization  $269,584,412   $254,730,750   $274,118,801 
Total Debt   360,595,790    266,351,678    340,912,008 
Preferred   136,625,000    91,595,000    136,625,000 
Total Market Capitalization  $766,805,202   $612,677,428   $751,655,809 
                
Total Debt  $360,595,790   $266,351,678   $340,912,008 
Less: Cash and Cash Equivalents   (7,914,718)   (11,076,165)   (6,535,897)
Net Debt   352,681,072    255,275,513    334,376,111 
Less: Securities Available for Sale at Fair               
Value (“Securities”)   (91,396,472)   (67,917,983)   (75,011,260)
Net Debt Less Securities  $261,284,600   $187,357,530   $259,364,851 
                
Interest Expense  $3,933,477   $2,941,654   $14,074,446 
Capitalized Interest   81,759    70,679    277,944 
Preferred Dividends Paid   2,789,747    1,889,147    8,267,198 
Total Fixed Charges  $6,804,983   $4,901,480   $22,619,588 
                
EBITDA  $11,458,713   $8,083,076   $36,368,381 
                
DEBT AND COVERAGE RATIOS               
                
Net Debt / Total Market Capitalization   46.0%   41.7%   44.5%
                
Net Debt Plus Preferred / Total Market Capitalization   63.8%   56.6%   62.7%
                
Net Debt Less Securities / Total Market Capitalization   34.1%   30.6%   34.5%
               
Net Debt Less Securities Plus Preferred / Total Market Capitalization   51.9%   45.5%   52.7%
                
Interest Coverage   2.9x   2.7x   2.6x
                
Fixed Charge Coverage   1.7x   1.6x   1.6x
                
Net Debt / EBITDA   7.7x   7.9x   9.2x
                
Net Debt Less Securities / EBITDA   5.7x   5.8x   7.1x
                
Net Debt Plus Preferred / EBITDA   10.7x   10.7x   13.0x
                
Net Debt Less Securities Plus Preferred / EBITDA   8.7x   8.6x   10.9x

 

UMH Properties, Inc. | First Quarter FY 2016 Supplemental Information

8 
 

 

Debt Analysis

(unaudited)

 

   Year to Date 
   3/31/2016   3/31/2015 
DEBT OUTSTANDING          
Mortgages Payable:          
Fixed Rate Mortgages (1)  $291,541,604   $221,050,762 
Variable Rate Mortgages   598,740    913,018 
Total Mortgages Before          
Unamortized Debt Issuance Costs   292,140,344    221,963,780 
Unamortized Debt Issuance Costs   (3,497,708)   (2,949,374)
Mortgages, Net of Unamortized          
Debt Issuance Costs   288,642,636    219,014,406 
Loans Payable:          
Unsecured Line of Credit   15,000,000    30,000,000 
Other Loans Payable   57,105,415    17,630,146 
Total Loans Before          
Unamortized Debt Issuance Costs   72,105,415    47,630,146 
Unamortized Debt Issuance Costs   (152,261)   (292,874)
Loans, Net of Unamortized          
Debt Issuance Costs   71,953,154    47,337,272 
           
 Total Debt, Net of Unamortized Debt Issuance Costs  $360,595,790   $266,351,678 
           
% FIXED/FLOATING          
Fixed   81.5%   83.7%
Floating   18.5%   16.3%
Total   100.0%   100.0%
           
WEIGHTED AVERAGE INTEREST RATES          
Mortgages Payable   4.54%   4.75%
Loans Payable   3.45%   3.71%
Total Average   4.32%   4.57%

 

Notes:

(1) Includes a variable rate mortgage with a balance of $11,218,570 and $11,987,371 as of March 31, 2016 and 2015, respectively, which has been effectively fixed at an interest rate of 3.89% with an interest rate swap agreement.

 

UMH Properties, Inc. | First Quarter FY 2016 Supplemental Information

9 
 

 

Debt Maturity

  

 

As of 3/31/2016:                 
Fiscal Year Ended   Mortgages   Loans   Total   % of Total 
2016   $8,572,548   $12,322,797   $20,895,345    5.7%
2017    30,262,060    24,168,636(1)   54,430,696    14.9%
2018    9,519,528    172,937    9,692,465    2.7%
2019    3,073,542    4,174,769    7,248,311    2.0%
2020    12,794,705    171,589    12,966,294    3.6%
Thereafter    227,917,961    31,094,687    259,012,648    71.1%
                      
Total Debt Before Unamortized                     
 Debt Issuance Costs    $292,140,344   $72,105,415   $364,245,759    100.0%
                      
Unamortized Debt Issuance Costs     (3,497,708)   (152,261)   (3,649,969)     
                      
Total Debt, Net of Unamortized                     
 Debt Issuance Costs   $288,642,636   $71,953,154   $360,595,790      

 

Notes:

(1) Includes $15 million Line of Credit due March 2016, which has been extended through March 2017.

 

UMH Properties, Inc. | First Quarter FY 2016 Supplemental Information

10 
 

Property Summary and Snapshot

(unaudited)

 

   3/31/2016   3/31/2015   % Change 
             
Communities   98    89    10.1%
Total Sites   17,793    15,176    17.2%
Occupied   14,129    12,356    14.3%
Occupancy % (1)   80.1%   82.3%   -2.2%
Monthly Rent Per Site  $417   $400    4.3%
Total Rentals   3,914    2,741    42.8%
Occupied Rentals   3,709    2,521    47.1%
Rental Occupancy %   94.8%   92.0%   2.8%
Monthly Rent per Home Rental  $687   $671    2.4%

 

Region  Number   Total Acreage   Developed Acreage   Vacant Acreage   Total Sites   Occupied Sites   Occupancy Percentage   Monthly Rent Per Site   Total Rentals   Occupied Rentals   Rental Occupancy Percentage   Monthly Rent Per Home Rental 
       (2)       (2)           (1)                   (3) 
                                                 
Indiana   9    661    561    100    2,653    1,863    70.2%  $393    715    678    94.8%  $699 
Michigan   2    68    68    -0-    354    240    67.8%  $419    97    93    95.9%  $689 
New Jersey   4    349    187    162    1,006    964    95.8%  $585    35    35    100.0%  $914 
New York   7    397    301    96    1,133    905    79.9%  $477    218    207    95.0%  $837 
Ohio   27    1,132    881    251    4,311    3,328    77.2%  $348    828    777    93.8%  $642 
E. Pennsylvania   26    964    805    159    3,606    3,049    84.6%  $457    688    648    94.2%  $715 
W. Pennsylvania   16    904    723    181    2,914    2,219    76.1%  $386    659    614    93.2%  $700 
Tennessee   7    413    321    92    1,816    1,561    86.0%  $418    674    657    97.5%  $688 
Total as of                                                            
March 31, 2016   98    4,888    3,847    1,041    17,793    14,129    80.1%  $417    3,914    3,709    94.8%  $687 

 

Notes:

  

(1) The 156 Vacant Sites at Memphis Blues are not included in the calculation of occupancy.

(2) Total and Vacant Acreage of 220 for the Mountain View Estates property is not included in the summary since there are no current sites and approval for sites is still in process.

(3) Includes home and site rent charges.

 

UMH Properties, Inc. | First Quarter FY 2016 Supplemental Information

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Same Property Statistics

(unaudited)

 

   For Three Months Ended 
   3/31/2016   3/31/2015   Change   %  Change 
Community Net Operating Income                    
                    
Rental and Related Income  $19,245,169   $17,111,991   $2,133,178    12.5%
Community Operating Expenses   8,906,188    8,251,841    654,347    7.9%
                     
Community NOI  $10,338,981   $8,860,150   $1,478,831    16.7%

 

   Year to Date     
   3/31/2016   3/31/2015   % Change 
OTHER INFORMATION               
Total Sites   14,856    14,879    -0.2%
Occupied Sites   12,409    12,216    1.6%
Occupancy %   83.5%   82.1%   1.4%
Number of Properties   88    88    N/A 
Developed Acreage   3,228    3,228    N/A 
Vacant Acreage   922    922    N/A 
Monthly Rent Per Site  $420   $401    4.7%
Total Rentals   3,468    2,741    26.5%
Occupied Rentals   3,297    2,521    30.8%
Rental Occupancy   95.1%   92.0%   3.1%
Monthly Rent Per Home Rental  $691   $671    3.0%

 

Notes:

Same Property includes all properties owned as of January 1, 2015, with the exception of Memphis Blues.

 

UMH Properties, Inc. | First Quarter FY 2016 Supplemental Information

12 
 

 

Acquisition Summary

 

At Acquisition:

 

Year   Number of Communities   Sites   Occupied Sites   Occupancy %   Price   Total Acres 
                          
2013    17    2,738    2,279    83%  $88,270,000    232 
2014    14    1,612    1,230    76%  $42,550,000    547 
2015    10    2,774    1,764    64%  $81,217,000    717 

 

 

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Definitions

 

Investors and analysts following the real estate industry utilize funds from operations (“FFO”), core funds from operations (“Core FFO”), normalized funds from operations (“Normalized FFO”), community NOI, same property NOI, and earnings before interest, taxes, depreciation and amortization (“EBITDA”), variously defined, as supplemental performance measures. While the Company believes net income available to common stockholders, as defined by accounting principles generally accepted in the United States of America (U.S. GAAP), is the most appropriate measure, it considers Community NOI, Same Property NOI, EBITDA, FFO, and Core FFO, given their wide use by and relevance to investors and analysts, appropriate supplemental performance measures. FFO, reflecting the assumption that real estate asset values rise or fall with market conditions, principally adjusts for the effects of U.S. GAAP depreciation and amortization of real estate assets. Core FFO reflects the same assumptions as FFO except that is also adjusts for the effects of acquisitions costs and costs of early extinguishment of debt. Community NOI and Same Property NOI provides a measure of rental operations, and does not factor in depreciation and amortization and non-property specific expenses such as general and administrative expenses. EBITDA provides a tool to further evaluate the ability to incur and service debt and to fund dividends and other cash needs. In addition, Community NOI, Same Property NOI, EBITDA, FFO, and Core FFO are commonly used in various ratios, pricing multiples, yields and returns and valuation of calculations used to measure financial position, performance and value.

 

As used herein, the Company calculates FFO, as defined by The National Association of Real Estate Investment Trusts (“NAREIT”), to be equal to net income (loss) applicable to common shareholders, as defined by U.S. GAAP, excluding extraordinary items as defined by U.S. 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. FFO includes gains and losses realized on securities investments.

 

Core FFO is calculated as FFO plus acquisition costs and costs of extinguishment of debt.

 

Normalized FFO is calculated as Core FFO excluding gains and losses realized on securities investments and certain one-time charges.

 

Community NOI is calculated as rental and related income less community operating expenses such as real estate taxes, repairs and maintenance, community salaries, utilities, insurance and other expenses. Community NOI excludes realized gains (losses) on securities transactions.

 

Same Property NOI is calculated as Community NOI, using all properties owned as of January 1, 2015, with the exception of Memphis Blues.

 

EBITDA is calculated as net income plus interest expense, franchise taxes and depreciation expense.

 

Community NOI, Same Property NOI, EBITDA, FFO, Core FFO and Normalized FFO do not represent cash generated from operating activities in accordance with U.S. GAAP and are not necessarily indicative of cash available to fund cash needs, including the repayment of principal on debt and payment of dividends and distributions. Community NOI, Same Property NOI, EBITDA, FFO, Core FFO and Normalized FFO should not be considered as substitutes for net income applicable to common shareholders (calculated in accordance with U.S. GAAP) as a measure of results of operations, or cash flows (calculated in accordance with U.S. GAAP) as a measure of liquidity. Community NOI, Same Property NOI, EBITDA, FFO, Core FFO and Normalized FFO as currently calculated by the Company may not be comparable to similarly titled, but variously calculated, measures of other REITs.

 

UMH Properties, Inc. | First Quarter FY 2016 Supplemental Information

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Press Release Dated May 9, 2016

 

FOR IMMEDIATE RELEASE May 9, 2016
  Contact: Nelli Madden
  732-577-9997

 

UMH PROPERTIES, INC. REPORTS 1st QUARTER 2016 EARNINGS

 

FREEHOLD, NJ, May 9, 2016........ UMH Properties, Inc. (NYSE:UMH) reported Core Funds from Operations (“Core FFO”) of $4,620,000 or $0.17 per diluted share for the quarter ended March 31, 2016, as compared to $3,159,000 or $0.13 per diluted share for the quarter ended March 31, 2015, representing an increase in Core FFO per diluted share of 30.8%. Normalized Funds from Operations (“Normalized FFO”), was $4,388,000 or $0.16 per diluted share for the quarter ended March 31, 2016, as compared to $3,226,000 or $0.13 per diluted share for the quarter ended March 31, 2015, representing an increase in Normalized FFO per diluted share of 23.1%.

 

A summary of significant financial information for the three months ended March 31, 2016 and 2015 is as follows:

 

   For the Three Months Ended 
   March 31, 
   2016   2015 
         
Total Income  $23,504,000   $18,344,000 
Total Expenses  $19,876,000   $16,370,000 
Gain on Securities Transactions, net  $232,000   $58,000 
Net Loss Attributable to Common Shareholders  $(883,000)  $(1,171,000)
Net Loss Attributable to Common
Shareholders per Diluted Common Share		  $(0.03)  $(0.05)
Core FFO (1)  $4,620,000   $3,159,000 
Core FFO (1) per Diluted Common Share   $0.17   $0.13 
Normalized FFO (1)  $4,388,000   $3,226,000 
Normalized FFO (1) per Diluted Common Share  $0.16   $0.13 
Weighted Average Diluted Shares Outstanding   27,161,000    24,841,000 

 

A summary of significant balance sheet information as of March 31, 2016 and December 31, 2015 is as follows:

 

   March 31, 2016   December 31, 2015 
         
Gross Real Estate Investments  $587,356,000   $577,709,000 
Total Assets  $624,040,000   $600,317,000 
Securities Available for Sale at Fair Value  $91,396,000   $75,011,000 
Mortgages Payable, net  $288,643,000   $283,050,000 
Loans Payable, net  $71,953,000   $57,862,000 
Total Shareholders’ Equity  $249,552,000   $246,238,000 

 

UMH Properties, Inc. | First Quarter FY 2016 Supplemental Information

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Samuel A. Landy, President and CEO, commented on the results of the first quarter of 2016.

 

“We are pleased to announce a strong quarter of operating results. During the quarter, we:

 

  ●  Increased Core FFO per diluted share to $0.17, representing a 30.8% increase over the prior year period and a 21.4% increase sequentially;
     
  ● Increased Normalized FFO per diluted share to $0.16, representing a 23.1% increase over the prior year period and a 14.3% increase sequentially;
     
  ● Increased Rental and Related Income by 26.5% over the prior year period;
     
  ● Increased Community Net Operating Income (“NOI”) by 33.6% over the prior year period;
     
  ● Increased Same Property Occupancy 140 basis points over the prior year period from 82.1% to 83.5%;
     
  ● Increased Same Property NOI by 16.7% over the prior year period;
     
  ● Decreased our Operating Expense Ratio 270 basis points over the prior year period from 51.2% to 48.5%;
     
  ● Increased homes sales by 52.3% over the prior year period from $1.1 million (24 homes sold) to $1.7 million (41 homes sold);
     
  ● Increased our rental home portfolio by 182 homes, representing an increase of 4.9% from yearend 2015 to approximately 3,900 total rental homes;
     
  ● Increased rental home occupancy from 92.9% at yearend 2015 to 94.8% at quarterend; and
     
  ●  Increased unrealized gain (loss) on REIT securities from an unrealized loss of $2.1 million at December 31, 2015 to an unrealized gain of $6.5 million at quarter end, in addition to recognizing realized gains of $232,000 and $1.5 million in dividend income for the quarter.”

 

“We are making substantial progress on many fronts. We are successfully integrating and upgrading our acquisitions, which is resulting in increased occupancy and NOI. Same Property NOI continues to grow at a high rate and increased by 16.7% this recent quarter over the prior year. Home sales showed meaningful growth as well, increasing by 52.3%. Our expense ratio continues to come down decreasing by 270 basis points over the prior year period. These healthier margins should continue to improve and generate increased earnings in the ensuing quarters.”

 

“Subsequent to quarterend, we closed on the sale of 2,000,000 shares of our 8.0% Series B Cumulative Redeemable Preferred Stock in a registered direct placement at a purchase price of $25.50 per share. We raised approximately $49.1 million in net proceeds and intend to use these proceeds for general corporate purposes, which may include purchase of manufactured homes for sale or lease to customers, expansion of our existing communities, potential acquisitions of additional properties, and possible repayment of indebtedness on a short-term basis. We anticipate adding 700 to 800 rental homes this year, which will further improve our operating results. Our strong first quarter results represent an excellent start to 2016 that we intend to build upon going forward.”

 

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UMH Properties, Inc. will host its First Quarter 2016 Financial Results Webcast and Conference Call. Senior management will discuss the results, current market conditions and future outlook on Tuesday, May 10, 2016 at 10:00 a.m. Eastern Time.

 

The Company’s 2016 first quarter financial results being released herein will be available on the Company’s website at www.umh.reit in the “Financial Information and Filings” section.

 

To participate in the webcast select the microphone icon found on the homepage www.umh.reit to access the call. Interested parties can also participate via conference call by calling toll free 877-513-1898 (domestically) or 412-902-4147 (internationally).

 

The replay of the conference call will be available at 12:00 p.m. Eastern Time on Tuesday, May 10, 2016. It will be available until August 1, 2016, and can be accessed by dialing toll free 877-344-7529 (domestically) and 412-317-0088 (internationally) and entering the passcode 10083025. A transcript of the call and the webcast replay will be available at the company’s website, www.umh.reit.

 

UMH Properties, Inc., which was organized in 1968, is a public equity REIT that owns and operates ninety-eight manufactured home communities containing approximately 17,800 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. The risks and uncertainties 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.

 

  Note:  
     
  (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 (“U.S. GAAP”), excluding extraordinary items, as defined under U.S. 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-U.S. GAAP supplemental measure of REIT operating performance. We define Core Funds From Operations (“Core FFO”) as FFO plus acquisition costs and costs of early extinguishment of debt. We define Normalized Funds From Operations (“Normalized FFO”) as Core FFO excluding gains and losses realized on securities investments and certain non-recurring charges. We define Community NOI as rental and related income less community operating expenses such as real estate taxes, repairs and maintenance, community salaries, utilities, insurance and other expenses.

 

UMH Properties, Inc. | First Quarter FY 2016 Supplemental Information

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Community NOI excludes realized gains (losses) on securities transactions. FFO, Core FFO and Normalized FFO, as well as Community NOI 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 U.S. GAAP; (ii) should not be considered as an alternative to net income (loss) 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 well as Community NOI, as calculated by the Company, may not be comparable to similarly titled measures reported by other REITs.

 

The reconciliation of the Company’s U.S. GAAP net loss to the Company’s FFO, Core FFO and Normalized FFO for the three months ended March 31, 2016 and 2015 are calculated as follows:

 

   Three Months Ended 
   3/31/16   3/31/15 
         
Net Loss Attributable to Common Shareholders  $(883,000)  $(1,171,000)
Depreciation Expense   5,525,000    4,229,000 
Gain on Sales of Depreciable Assets   (22,000)   (5,000)
FFO Attributable to Common Shareholders   4,620,000    3,053,000 
Acquisition Costs   -0-    106,000 
Core FFO Attributable to Common Shareholders   4,620,000    3,159,000 
Gain on Sale of Securities Transactions, net   (232,000)   (58,000)
Settlement of Memphis Mobile City Litigation   -0-    125,000 
Normalized FFO Attributable to Common Shareholders  $4,388,000   $3,226,000 

 

The following are the cash flows provided (used) by operating, investing and financing activities for the three months ended March 31, 2016 and 2015:

 

   Three Months Ended 
   3/31/16   3/31/15 
         
Operating Activities  $7,659,000   $7,245,000 
Investing Activities   (18,538,000)   (12,154,000)
Financing Activities   12,258,000    7,902,000 

 

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