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UMH Properties Inc Reports Operating Results (10-Q)

May 06, 2010 | About:
Barel Karsan

10qk

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UMH Properties Inc (UMH) filed Quarterly Report for the period ended 2010-03-31.

Umh Properties Inc has a market cap of $112.7 million; its shares were traded at around $9.13 with a P/E ratio of 13.1 and P/S ratio of 3.3. The dividend yield of Umh Properties Inc stocks is 7.9%.
This is the annual revenues and earnings per share of UMH over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of UMH.


Highlight of Business Operations:

Gain on securities transactions, net amounted to $981,915 for the quarter ended March 31, 2010 as compared to a loss of $2,280,585 for the quarter ended March 31, 2009. During 2009, the Company recognized approximately $1,700,000 in impairment losses due to the writing down of the carrying value of certain securities which were considered other than temporarily impaired. The market for REIT securities has dramatically improved and the Company has unrealized gains of $6,304,250 in its REIT securities portfolio as of March 31, 2010. It is our intent to hold these securities long-term.

Sales of manufactured homes amounted to $1,456,951 and $1,085,800 for the quarters ended March 31, 2010 and 2009, respectively. Cost of sales of manufactured homes amounted to $1,374,033 and $1,002,239 for the quarters ended March 31, 2010 and 2009, respectively. Selling expenses amounted to $398,718 and $323,630 for the quarters ended March 31, 2010 and 2009, 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 $315,800 or 22% of total sales, and $240,069 or 22% of total sales for the quarters ended March 31, 2010 and 2009, respectively. The Company believes that sales of new homes produces new rental revenue and is an investment in the upgrading of the communities.

Community operating expenses increased 7% from $3,210,686 for the quarter ended March 31, 2009 to $3,434,701 for the quarter ended March 31, 2010. This was primarily due to an increase in repairs and maintenance due to the severe winter and an increase in personnel. General and administrative expenses increased 11% from $781,638 for the quarter ended March 31, 2009 to $866,728 for the quarter ended March 31, 2010. This was primarily due to an increase in office expenses and licensing fees. Depreciation expense and amortization expense remained relatively stable for the quarter ended March 31, 2010 as compared to the quarter ended March 31, 2009.

Interest expense increased 11% from $1,095,261 for the quarter ended March 31, 2009 to $1,219,905 for the quarter ended March 31, 2010. This was primarily due to an increase in mortgages payable and the change in fair value of the Company’s interest rate swaps. The change in fair value of the Company’s interest rate swaps decreased interest expense by approximately $77,000 in 2009. Cash paid for interest during the three months ended March 31, 2010 and 2009 amounted to $1,174,539 and $1,177,999, respectively.

The Company raised $3,591,826 from the issuance of shares in the DRIP during the quarter ended March 31, 2010, which included dividend reinvestments of $289,375. Dividends paid on the common stock for the quarter ended March 31, 2010 were $2,222,879 of which $289,375 was reinvested. On April 8, 2010, the Company declared a dividend of $.18 per share to be paid June 15, 2010 to shareholders of record as of May 17, 2010.

As of March 31, 2010, the Company has a $5,000,000 unsecured line of credit, of which $3,000,000 was utilized and a $10,000,000 revolving line of credit for the financing of home sales, of which $8,100,000 was utilized. The Company also has a $7,500,000 revolving credit facility to finance inventory purchases, of which $2,027,272 was utilized. The Company owns 28 properties, of which 14 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. The Company believes that funds generated from operations and the DRIP, the funds available on the lines of credit, together with the ability to finance and refinance its properties will provide sufficient funds to adequately meet its obligations over the next several years.

Read the The complete Report

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