GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

UMH Properties Inc Reports Operating Results (10-Q)

November 13, 2012 | About:
10qk

10qk

18 followers
UMH Properties Inc (UMH) filed Quarterly Report for the period ended 2012-09-30.

Umh Properties Inc has a market cap of $163.5 million; its shares were traded at around $10.01 with a P/E ratio of 16.4 and P/S ratio of 4.2. The dividend yield of Umh Properties Inc stocks is 7.2%.

Highlight of Business Operations:

The Company also holds a portfolio of securities of other REITs with a fair value of $53,567,433 at September 30, 2012, which earns dividend and interest income. The dividends received from our securities investments were at a weighted-average yield of approximately 6.5% as of September 30, 2012. During the nine months ended September 30, 2012, the Company recognized gains on sales of securities of $3,495,730. At September 30, 2012, the Company had net unrealized gains of $7,577,828 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 portfolio provides the Company with liquidity and additional income and serves as a proxy for real property investments.

Sales of manufactured homes amounted to $2,350,189 and $1,182,455 for the quarters ended September 30, 2012 and 2011, respectively. Sales of manufactured homes amounted to $6,718,129 and $3,826,400 for the nine months ended September 30, 2012 and 2011, respectively. Cost of sales of manufactured homes amounted to $2,103,234 and $1,061,969 for the quarters ended September 30, 2012 and 2011, respectively. Cost of sales of manufactured homes amounted to $6,143,637 and $3,519,974 for the nine months ended September 30, 2012 and 2011, respectively. Selling expenses amounted to $540,831 and $638,649 for the quarters ended September 30, 2012 and 2011, respectively. This decrease is related to a decrease in provision for bad debts and a decrease in travel and other selling expenses. Selling expenses amounted to $1,600,576 and $1,514,416 for the nine months ended September 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 $293,876 or 13% of total sales, and $518,163 or 44% of total sales for the quarters ended September 30, 2012 and 2011, respectively. Loss from the sales operations amounted to $1,026,084 or 15% of total sales, and $1,207,990 or 32% of total sales for the nine months ended September 30, 2012 and 2011, respectively. The gross profit percentage was 11% and 10% for the quarters ended September 30, 2012 and 2011, respectively. The gross profit percentage was 9% and 8% for the nine months ended September 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 24% or $10,269,219 during the nine months ended September 30, 2012. The increase was due to purchases of securities available for sale of $14,258,362 and an increase in the unrealized gain of $5,116,523. These increases were partially offset by sales with an adjusted cost of $9,105,666.

Net cash provided by operating activities amounted to $4,710,629 and $5,575,472 for the nine months ended September 30, 2012 and 2011, respectively. As of September 30, 2012, the Company had cash of $4.4 million, securities available for sale of $53.6 million, $5 million available on its unsecured line of credit, and $8 million available on its revolving lines of credit for the financing of home sales and the purchase of inventory. The Company owns 55 properties, of which 24 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

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 4.5/5 (2 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide