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UMH Properties Inc Reports Operating Results (10-Q)

August 08, 2012 | About:
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10qk

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UMH Properties Inc (UMH) filed Quarterly Report for the period ended 2012-06-30.

Umh Properties, Inc has a market cap of $188.8 million; its shares were traded at around $11.56 with a P/E ratio of 22.3 and P/S ratio of 4.8. The dividend yield of Umh Properties, Inc stocks is 6.1%.

Highlight of Business Operations:

The Company also holds a portfolio of securities of other REITs with a fair value of $55,271,574 at June 30, 2012, which earns dividend and interest income. The dividends received from our securities investments were at a weighted-average yield of approximately 6.6% as of June 30, 2012. During the six months ended June 30, 2012, the Company recognized gains on sales of securities of $2,281,066. At June 30, 2012, the Company had net unrealized gains of $9,844,386 in its REIT securities portfolio. The Company invests in REIT securities on margin from time to time when the Company can achieve an adequate yield spread. The REIT securities

Sales of manufactured homes amounted to $2,237,037 and $1,557,701 for the quarters ended June 30, 2012 and 2011, respectively. Sales of manufactured homes amounted to $4,367,940 and $2,643,945 for the six months ended June 30, 2012 and 2011, respectively. Cost of sales of manufactured homes amounted to $2,068,077 and $1,473,634 for the quarters ended June 30, 2012 and 2011, respectively. Cost of sales of manufactured homes amounted to $4,040,403 and $2,458,005 for the six months ended June 30, 2012 and 2011, respectively. Selling expenses amounted to $628,682 and $490,671 for the quarters ended June 30, 2012 and 2011, respectively. Selling expenses amounted to $1,059,745 and $875,767 for the six months ended June 30, 2012 and 2011, respectively. These increases are directly attributable to the increase in sales. Loss from the sales operations (defined as sales of manufactured homes less cost of sales of manufactured homes less selling expenses) amounted to $459,722 or 21% of total sales, and $406,604 or 26% of total sales for the quarters ended June 30, 2012 and 2011, respectively. Loss from the sales

operations amounted to $732,208 or 17% of total sales, and $689,827 or 26% of total sales for the six months ended June 30, 2012 and 2011, respectively. The gross profit percentage was 8% and 5% for the quarters ended June 30, 2012 and 2011, respectively. The gross profit percentage was 7% for both the six months ended June 30, 2012 and 2011. Activity in our communities has increased. 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 28% or $11,973,360 during the six months ended June 30, 2012. The increase was due to purchases of securities available for sales of $11,562,803 and an increase in the unrealized gain of $7,383,081. These increases were partially offset by sales with an adjusted cost of $6,972,524.

Net cash provided by operating activities amounted to $4,075,109 and $4,368,380 for the six months ended June 30, 2012 and 2011, respectively. As of June 30, 2012, the Company had cash of $20.9 million, securities available for sale of $55.3 million, $5 million available on its unsecured line of credit, and $6 million available on its revolving lines of credit for the financing of home sales and the purchase of inventory. The Company owns 41 properties, of which 22 are unencumbered. These marketable securities, non-mortgaged properties, and lines of credit provide the Company with additional liquidity. The Company has been raising capital through its DRIP and through public offerings of its preferred stock.

Read the The complete Report

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10qk
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