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UMH Properties Inc Reports Operating Results (10-Q)

November 08, 2011 | About:
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10qk

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UMH Properties Inc (UMH) filed Quarterly Report for the period ended 2011-09-30.

Umh Properties has a market cap of $147 million; its shares were traded at around $10.02 with a P/E ratio of 13 and P/S ratio of 4.3. The dividend yield of Umh Properties stocks is 7.2%.

Highlight of Business Operations:

The Companys income primarily consists of rental and related income from the operation of its manufactured home communities. Income also includes sales of manufactured homes. Total income rose 14% and 15% for the quarter and nine months ended September 30, 2011, respectively, as compared to the quarter and nine months ended September 30, 2010, primarily due to the new acquisitions in 2010 and 2011. Sales of manufactured homes have stabilized but continue to be disappointing due to weaknesses in the overall economy. Our customers still face difficulties in selling their existing homes. This coupled with continued high unemployment rates, has negatively impacted our sales and our gross profit percentage.

Sales of manufactured homes amounted to $1,182,455 and $1,382,362 for the quarters ended September 30, 2011 and 2010, respectively, a decrease of 14%. Sales of manufactured homes amounted to $3,826,400 and $3,930,793 for the nine months ended September 30, 2011 and 2010, respectively, a decrease of 3%. Cost of sales of manufactured homes amounted to $1,061,969 and $1,280,009 for the quarters ended September 30, 2011 and 2010, respectively. Cost of sales of manufactured homes amounted to $3,519,974 and $3,711,988 for the nine months ended September 30, 2011 and 2010, respectively. Selling expenses amounted to $638,649 and $413,906 for the quarters ended September 30, 2011 and 2010, respectively. Selling expenses amounted to $1,514,416 and $1,210,136 for the nine months ended September 30, 2011 and 2010, respectively. Loss from the sales operations (defined as sales of manufactured homes less cost of sales of manufactured homes less selling expenses) amounted to $518,163, or 44% of total sales, for the quarter ended September 30, 2011 as compared to $311,553, or 23% of total sales, for the quarter ended September 30, 2010. Loss from sales operations amounted to $1,207,990, or 32% of total sales, for the nine months ended September 30, 2011 as compared to $991,331, or 25% of total sales, for the nine months ended September 30, 2010. The Company believes that sales of new homes produces new rental revenue and is an investment in the upgrading of the communities.

Securities available for sale increased 35% or $10,087,955 during the nine months ended September 30, 2011. This increase was due primarily to purchases of $19,183,660, partially offset by the sales of securities with a cost of $1,747,209 and a decrease in unrealized gain of $7,348,496.

Read the The complete Report

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