UMH Properties, Inc. (NYSE:UMH) reported Total Income for the quarter ended September 30, 2021 of $48.0 million as compared to $43.1 million for the quarter ended September 30, 2020, representing an increase of 11%. Net Loss Attributable to Common Shareholders amounted to $3.4 million or $0.07 per diluted share for the quarter ended September 30, 2021 as compared to $12.7 million or $0.31 per diluted share for the quarter ended September 30, 2020.
Funds from Operations Attributable to Common Shareholders (“FFO”), was $10.8 million or $0.22 per diluted share for the quarter ended September 30, 2021 as compared to $4.5 million or $0.11 per diluted share for the quarter ended September 30, 2020. Normalized Funds from Operations Attributable to Common Shareholders (“Normalized FFO”), was $11.1 million or $0.23 per diluted share for the quarter ended September 30, 2021, as compared to $7.4 million or $0.18 per diluted share for the quarter ended September 30, 2020.
A summary of significant financial information for the three and nine months ended September 30, 2021 and 2020 is as follows (in thousands except per share amounts):
|Decrease in Fair Value of Marketable Securities||$||(5,390||)||$||(6,739||)|
|Net Loss Attributable to Common Shareholders||$||(3,403||)||$||(12,747||)|
|Net Loss Attributable to Common|
Shareholders per Diluted Common Share
|FFO (1) per Diluted Common Share||$||0.22||$||0.11|
|Normalized FFO (1)||$||11,146||$||7,386|
|Normalized FFO (1) per Diluted Common Share||$||0.23||$||0.18|
|Diluted Weighted Average Shares Outstanding||47,778||41,421|
|Increase (Decrease) in Fair Value of Marketable Securities||$||14,120||$||(31,921||)|
|Net Income (Loss) Attributable to Common Shareholders||$||11,839||$||(45,350||)|
|Net Income (Loss) Attributable to Common|
Shareholders per Diluted Common Share
|FFO (1) per Diluted Common Share||$||0.63||$||0.43|
|Normalized FFO (1)||$||30,128||$||20,610|
|Normalized FFO (1) per Diluted Common Share||$||0.65||$||0.50|
|Diluted Weighted Average Shares Outstanding||46,247||41,275|
A summary of significant balance sheet information as of September 30, 2021 and December 31, 2020 is as follows (in thousands):
|Gross Real Estate Investments||$||1,169,468||$||1,108,483|
|Marketable Securities at Fair Value||$||102,811||$||103,172|
|Mortgages Payable, net||$||467,527||$||471,477|
|Loans Payable, net||$||39,809||$||87,009|
|Total Shareholders’ Equity||$||669,635||$||501,808|
Samuel A. Landy, President and CEO, commented on the results of the third quarter of 2021.
“UMH continues to fire on all cylinders. During the quarter, we:
Mr. Landy stated, “We are very pleased to report another quarter of normalized FFO growth. Normalized FFO for the third quarter was $0.23 per share as compared to $0.18 last year. This represents an increase of 28%. Year to date, normalized FFO is $0.65 per share as compared to $0.50 last year. This represents an increase of approximately 30%. This marks six consecutive quarters that we have maintained or increased our normalized FFO.”
“Our business plan and our platform continue to generate exceptional operating results. The improvements we have made at our communities are being recognized by our residents and potential residents which has resulted in strong demand for sales and rental units. Same store occupancy increased by 190 basis points, to 87.3%, over last year. Our increasing occupancy level pared with reasonable rent growth resulted in 9.1% same property income growth and 14.9% same property NOI growth for the quarter. Year to date, same property revenue increased 10.3% and same property NOI increased 14.7%.”
“Our sales results also continue to improve. Sales of manufactured homes for the quarter increased 15% and for the year have increased 45%. Year to date, our sales volume of $21.8 million has already broken our annual sales record that was set last year of $20.3 million. Our income from sales for the year is $1.5 million as compared to $445,000 representing an increase of 246%.”
“We have the ability to continue to drive similar operating performance as we are able to fill our remaining 3,300 vacant sites, obtain reasonable rent increases, develop our 1,800 vacant acres and continue to increase our sales profitability. Our balance sheet is strong, and we are well positioned to assertively refinance our 6.75% Series C Preferred Stock next year which could result in earnings growth of $0.10-$0.15 per share depending on the ratio of debt and equity used for the redemption.”
“We have purchased and developed great communities, but even more importantly, we have created a great company with great people that can continue to achieve exceptional results for decades to come.”
UMH Properties, Inc. will host its Third Quarter 2021 Financial Results Webcast and Conference Call. Senior management will discuss the results, current market conditions and future outlook on Thursday, November 4, 2021 at 10:00 a.m. Eastern Time.
The Company’s 2021 third quarter financial results being released herein will be available on the Company’s website at www.umh.reit in the “Financials” section.
To participate in the webcast, select the webcast icon on the homepage of the Company’s website at www.umh.reit, in the Upcoming Events section. 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 Thursday, November 4, 2021. It will be available until February 4, 2022 and can be accessed by dialing toll free 877-344-7529 (domestically) and 412-317-0088 (internationally) and entering the passcode 10159917. 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 127 manufactured home communities containing approximately 24,000 developed homesites. These communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Michigan, Maryland, Alabama and South Carolina.
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.
(1) Non-GAAP Information: We assess and measure our overall operating results based upon an industry performance measure referred to as Funds from Operations Attributable to Common Shareholders (“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, the change in the fair value of marketable securities, and the gain or loss on the sale of marketable securities plus certain non-cash items such as real estate asset depreciation and amortization. Included in the NAREIT FFO White Paper - 2018 Restatement, is an option pertaining to assets incidental to our main business in the calculation of NAREIT FFO to make an election to include or exclude gains and losses on the sale of these assets, such as marketable equity securities, and include or exclude mark-to-market changes in the value recognized on these marketable equity securities. In conjunction with the adoption of the FFO White Paper - 2018 Restatement, for all periods presented, we have elected to exclude the gains and losses realized on marketable securities investments and the change in the fair value of marketable securities from our FFO calculation. NAREIT created FFO as a non-U.S. GAAP supplemental measure of REIT operating performance. We define Normalized Funds from Operations Attributable to Common Shareholders (“Normalized FFO”), as FFO excluding certain one-time charges. FFO and Normalized FFO should be considered as supplemental measures of operating performance used by REITs. FFO and Normalized FFO exclude historical cost depreciation as an expense and may facilitate the comparison of REITs which have a different cost basis. However, other REITs may use different methodologies to calculate FFO and Normalized FFO and, accordingly, our FFO and Normalized FFO may not be comparable to all other REITs. The items excluded from FFO and Normalized FFO are significant components in understanding the Company’s financial performance.
FFO and Normalized FFO (i) do not represent Cash Flow from Operations as defined by U.S. GAAP; (ii) should not be considered as alternatives 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.
The reconciliation of the Company’s U.S. GAAP net loss to the Company’s FFO and Normalized FFO for the three and nine months ended September 30, 2021 and 2020 are calculated as follows (in thousands):
Net Income (Loss) Attributable to Common Shareholders
|Loss on Sales of Investment Property and Equipment||91||31||109||177|
|(Increase) Decrease in Fair Value of Marketable|
|Gain on Sales of Marketable Securities, net||(2,636||)||-0-||(2,342||)||-0-|
|Non- Recurring Other Expense (2)||324||-0-||1,070||-0-|
|Redemption of Preferred Stock||-0-||2,871||-0-||2,871|
The diluted weighted shares outstanding used in the calculation of FFO per Diluted Common Share and Normalized FFO per Diluted Common Share were 49.1 million and 46.2 million shares for the three and nine months ended September 30, 2021, respectively, and 41.8 million and 41.6 million shares for the three and nine months ended September 30, 2020, respectively. Common stock equivalents resulting from stock options in the amount of 1.3 and 1.0 million shares for the three and nine months ended September 30, 2021, respectively, and 426,000 and 348,000 shares for the three and nine months ended September 30, 2020, respectively, are included in the diluted weighted shares outstanding. Common stock equivalents for the three months ended September 30, 2021 and the three and nine months ended September 30, 2020, were excluded from the computation of the Diluted Net Income (Loss) per Share as their effect would be anti-dilutive.
The following are the cash flows provided (used) by operating, investing and financing activities for the nine months ended September 30, 2021 and 2020 (in thousands):
(2) Consists of special bonus and restricted stock grants for the August 2020 groundbreaking Fannie Mae financing, which is being expensed over the vesting period.
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UMH Properties, Inc.
Founded: 1968 (54 years)
Type of REIT: Equity REIT
Listing Status: Public
Market Capitalization: Small-Cap
REIT Sector: Residential
Internally Managed REIT
REITRating is REITNote's Real Estate Investment Trust industry-specific rating and ranking system. The overall score is out of ten points, with ten being the best score.
Latest Price: $24.93
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Last updated: 2022-01-16 - v0.5