UMH Properties, Inc. | ||
Juniper Business Plaza | Website: | www.umh.com |
3499 Route 9 North, Suite 3C | Email: | umh@umh.com |
Freehold, NJ 07728 | Phone: | (732) 577-9997 |
Table of Contents | |
Page | |
Financial Highlights | 3 |
Consolidated Balance Sheets | 4 |
Consolidated Statements of Income (Loss) | 5 |
Consolidated Statement of Cash Flows | 6 |
Reconciliation of Net Income to EBITDA and Net Loss Attributable | 7 |
to Common Shareholders to FFO, Core FFO and Normalized FFO | |
Market Capitalization, Debt and Coverage Levels | 8 |
Debt Analysis and Debt Maturity | 9 |
Property Summary and Snapshot | 10 |
Same Property Statistics | 11 |
Acquisition Summary | 12 |
Marcellus and Utica Shale Region Exposure | 13 |
Definitions | 14 |
Press Release Dated November 4, 2015 | 15 |
UMH Properties, Inc. | Third Quarter FY 2015 Supplemental Information | 2 |
Financial Highlights
(unaudited)
Three Months Ended | Nine Months Ended | |||||||||||
9/30/2015 | 9/30/2014 | 9/30/2015 | 9/30/2014 | |||||||||
Operating Information | ||||||||||||
Number of Communities | 95 | 88 | 95 | 88 | ||||||||
Rental and Related Income | $ | 18,970,407 | $ | 16,356,269 | $ | 54,123,435 | $ | 46,971,953 | ||||
Community Operating Expenses | $ | 9,337,742 | $ | 8,608,897 | $ | 27,289,770 | $ | 25,238,452 | ||||
Community NOI | $ | 9,632,665 | $ | 7,747,372 | $ | 26,833,665 | $ | 21,733,501 | ||||
Expense Ratio | 49.2% | 52.6% | 50.4% | 53.7% | ||||||||
Sales of Manufactured Homes | 2,724,592 | 2,198,513 | 5,469,093 | 5,580,742 | ||||||||
Number of Homes Sold | 45 | 35 | 101 | 95 | ||||||||
Number of Rentals Added | 415 | 245 | 712 | 310 | ||||||||
Net Income | $ | 1,047,245 | $ | 629,271 | $ | 1,969,744 | $ | 2,674,185 | ||||
Net Loss Attributable to | ||||||||||||
Common Shareholders | $ | (841,902) | $ | (1,259,876) | $ | (3,697,697) | $ | (2,993,256) | ||||
EBITDA | $ | 9,527,708 | $ | 7,737,888 | $ | 25,916,664 | $ | 22,340,201 | ||||
FFO | $ | 3,941,361 | $ | 2,708,185 | $ | 9,834,251 | $ | 8,061,380 | ||||
Core FFO | $ | 4,096,320 | $ | 2,899,127 | $ | 10,372,985 | $ | 8,537,501 | ||||
Normalized FFO | $ | 4,048,649 | $ | 2,841,781 | $ | 10,370,566 | $ | 7,264,698 | ||||
Shares Outstanding and Per Share Data | ||||||||||||
Weighted Average Shares | ||||||||||||
Outstanding | ||||||||||||
Basic | 26,388,589 | 22,838,726 | 25,600,310 | 22,048,173 | ||||||||
Diluted | 26,425,808 | 22,889,354 | 25,641,070 | 22,096,206 | ||||||||
Community NOI - | ||||||||||||
Basic | $ | 0.37 | $ | 0.34 | $ | 1.05 | $ | 0.99 | ||||
Diluted | $ | 0.36 | $ | 0.34 | $ | 1.05 | $ | 0.98 | ||||
Net Loss Attributable | ||||||||||||
to Common Shareholders | ||||||||||||
per Share - | ||||||||||||
Basic and Diluted | $ | (0.03) | $ | (0.06) | $ | (0.14) | $ | (0.14) | ||||
FFO per Share- | ||||||||||||
Basic | $ | 0.15 | $ | 0.12 | $ | 0.38 | $ | 0.37 | ||||
Diluted | $ | 0.15 | $ | 0.12 | $ | 0.38 | $ | 0.36 | ||||
Core FFO per Share- | ||||||||||||
Basic | $ | 0.16 | $ | 0.13 | $ | 0.41 | $ | 0.39 | ||||
Diluted | $ | 0.15 | $ | 0.13 | $ | 0.40 | $ | 0.39 | ||||
Normalized FFO per Share- | ||||||||||||
Basic | $ | 0.16 | $ | 0.12 | $ | 0.41 | $ | 0.33 | ||||
Diluted | $ | 0.15 | $ | 0.12 | $ | 0.40 | $ | 0.33 | ||||
Dividends per Common Share | $ | 0.18 | $ | 0.18 | $ | 0.54 | $ | 0.54 | ||||
Balance Sheet | ||||||||||||
Total Assets | $ | 551,135,266 | $ | 466,102,079 | $ | 551,135,266 | $ | 466,102,079 | ||||
Total Liabilities | $ | 346,519,639 | $ | 265,099,442 | $ | 346,519,639 | $ | 265,099,442 | ||||
Market Capitalization | ||||||||||||
Total Debt | $ | 335,123,637 | $ | 256,209,979 | $ | 335,123,637 | $ | 256,209,979 | ||||
Equity Market Capitalization | $ | 249,165,488 | $ | 221,230,956 | $ | 249,165,488 | $ | 221,230,956 | ||||
Preferred Stock | $ | 91,595,000 | $ | 91,595,000 | $ | 91,595,000 | $ | 91,595,000 | ||||
Total Market Capitalization | $ | 675,884,125 | $ | 569,035,935 | $ | 675,884,125 | $ | 569,035,935 |
UMH Properties, Inc. | Third Quarter FY 2015 Supplemental Information | 3 |
Consolidated Balance Sheets
September 30, | December 31, | |||||
2015 | 2014 | |||||
ASSETS | (unaudited) | |||||
Investment Property and Equipment | ||||||
Land | $ | 42,415,514 | $ | 39,133,514 | ||
Site and Land Improvements | 344,269,874 | 299,776,250 | ||||
Buildings and Improvements | 19,434,910 | 17,534,698 | ||||
Rental Homes and Accessories | 122,561,676 | 91,719,997 | ||||
Total Investment Property | 528,681,974 | 448,164,459 | ||||
Equipment and Vehicles | 13,185,098 | 12,242,086 | ||||
Total Investment Property and Equipment | 541,867,072 | 460,406,545 | ||||
Accumulated Depreciation | (112,634,111) | (99,522,180) | ||||
Net Investment Property and Equipment | 429,232,961 | 360,884,365 | ||||
Other Assets | ||||||
Cash and Cash Equivalents | 7,900,436 | 8,082,792 | ||||
Securities Available for Sale at Fair Value | 61,436,212 | 63,555,961 | ||||
Inventory of Manufactured Homes | 13,468,373 | 12,306,715 | ||||
Notes and Other Receivables, net | 20,134,541 | 21,992,566 | ||||
Unamortized Financing Costs | 4,238,993 | 2,228,779 | ||||
Prepaid Expenses and Other Assets | 8,436,630 | 3,356,034 | ||||
Land Development Costs | 6,287,120 | 5,861,764 | ||||
Total Other Assets | 121,902,305 | 117,384,611 | ||||
TOTAL ASSETS | $ | 551,135,266 | $ | 478,268,976 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Liabilities | ||||||
Mortgages Payable | $ | 265,965,805 | $ | 182,670,854 | ||
Other Liabilities | ||||||
Accounts Payable | 2,726,181 | 1,824,293 | ||||
Loans Payable | 69,157,832 | 77,439,230 | ||||
Accrued Liabilities and Deposits | 5,284,797 | 4,757,604 | ||||
Tenant Security Deposits | 3,385,024 | 2,749,890 | ||||
Total Other Liabilities | 80,553,834 | 86,771,017 | ||||
Total Liabilities | 346,519,639 | 269,441,871 | ||||
COMMITMENTS AND CONTINGENCIES | ||||||
Shareholders' Equity: | ||||||
Series A - 8.25% Cumulative Redeemable Preferred Stock, Par Value $0.10, | ||||||
Per Share: 3,663,800 Shares Authorized, Issued and Outstanding as of | ||||||
September 30, 2015 and December 31, 2014, respectively | 91,595,000 | 91,595,000 | ||||
Common Stock – $0.10 Par Value Per Share: 42,000,000 Shares Authorized; | ||||||
26,781,988 and 24,372,083 Shares Issued and Outstanding as of | ||||||
September 30, 2015 and December 31, 2014, respectively | 2,679,199 | 2,437,208 | ||||
Excess Stock – $0.10 Par Value Per Share: 3,000,000 Shares Authorized; | ||||||
No Shares Issued or Outstanding | -0- | -0- | ||||
Additional Paid-In Capital | 115,240,854 | 110,422,454 | ||||
Accumulated Other Comprehensive Income | (4,231,633) | 5,040,236 | ||||
Accumulated Deficit | (667,793) | (667,793) | ||||
Total Shareholders' Equity | 204,615,627 | 208,827,105 | ||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 551,135,266 | $ | 478,268,976 |
UMH Properties, Inc. | Third Quarter FY 2015 Supplemental Information | 4 |
Consolidated Statements of Income (Loss)
(unaudited)
Three Months Ended | Nine Months Ended | |||||||||||
9/30/2015 | 9/30/2014 | 9/30/2015 | 9/30/2014 | |||||||||
INCOME: | ||||||||||||
Rental and Related Income | $ | 18,970,407 | $ | 16,356,269 | $ | 54,123,435 | $ | 46,971,953 | ||||
Sales of Manufactured Homes | 2,724,592 | 2,198,513 | 5,469,093 | 5,580,742 | ||||||||
TOTAL INCOME | 21,694,999 | 18,554,782 | 59,592,528 | 52,552,695 | ||||||||
EXPENSES: | ||||||||||||
Community Operating Expenses | 9,337,742 | 8,608,897 | 27,289,770 | 25,238,452 | ||||||||
Cost of Sales of Manufactured Homes | 2,089,602 | 1,678,733 | 4,209,126 | 4,389,345 | ||||||||
Selling Expenses | 798,126 | 856,784 | 2,141,693 | 2,329,599 | ||||||||
General and Administrative Expenses | 1,799,181 | 1,500,920 | 5,264,839 | 4,883,899 | ||||||||
Acquisition Costs | 154,959 | 190,942 | 449,338 | 476,121 | ||||||||
Depreciation Expense | 4,786,090 | 3,941,218 | 13,465,559 | 11,051,344 | ||||||||
TOTAL EXPENSES | 18,965,700 | 16,777,494 | 52,820,325 | 48,368,760 | ||||||||
OTHER INCOME (EXPENSE): | ||||||||||||
Interest Income | 442,600 | 518,699 | 1,387,062 | 1,603,713 | ||||||||
Dividend Income | 1,121,274 | 995,284 | 3,222,928 | 3,059,359 | ||||||||
Gain on Sale of Securities Transactions, net | 47,671 | 57,346 | 127,419 | 1,272,803 | ||||||||
Other Income | 154,488 | 199,954 | 293,044 | 444,218 | ||||||||
Interest Expense | (3,309,322) | (2,763,511) | (9,359,042) | (7,502,164) | ||||||||
Amortization of Financing Costs | (141,592) | (128,946) | (407,481) | (384,387) | ||||||||
TOTAL OTHER INCOME (EXPENSE) | (1,684,881) | (1,121,174) | (4,736,070) | (1,506,458) | ||||||||
Income before Gain (Loss) on Sales of | ||||||||||||
Investment Property and Equipment | 1,044,418 | 656,114 | 2,036,133 | 2,677,477 | ||||||||
Gain (Loss) on Sales of Investment Property | ||||||||||||
and Equipment | 2,827 | (26,843) | (66,389) | (3,292) | ||||||||
NET INCOME | 1,047,245 | 629,271 | 1,969,744 | 2,674,185 | ||||||||
Less: Preferred Dividend | 1,889,147 | 1,889,147 | 5,667,441 | 5,667,441 | ||||||||
NET LOSS ATTRIBUTABLE TO | ||||||||||||
COMMON SHAREHOLDERS | $ | (841,902) | $ | (1,259,876) | $ | (3,697,697) | $ | (2,993,256) |
UMH Properties, Inc. | Third Quarter FY 2015 Supplemental Information | 5 |
Consolidated Statements of Cash Flows
(unaudited)
9/30/2015 | 9/30/2014 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
Net Income | $ | 1,969,744 | $ | 2,674,185 | ||
Non-Cash Adjustments: | ||||||
Depreciation | 13,465,559 | 11,051,344 | ||||
Amortization of Financing Costs | 407,481 | 384,387 | ||||
Stock Compensation Expense | 657,230 | 742,920 | ||||
Increase in Provision for Uncollectible Notes and Other Receivables | 803,103 | 736,864 | ||||
Gain on Sales of Securities Transactions, net | (127,419) | (1,272,803) | ||||
(Gain) Loss on Sales of Investment Property and Equipment | 66,389 | 3,292 | ||||
Changes in Operating Assets and Liabilities: | ||||||
Inventory of Manufactured Homes | (1,161,658) | (1,833,084) | ||||
Notes and Other Receivables | 1,054,922 | 657,506 | ||||
Prepaid Expenses and Other Assets | (5,080,596) | 73,444 | ||||
Accounts Payable | 901,888 | 668,354 | ||||
Accrued Liabilities and Deposits | 416,754 | 97,117 | ||||
Tenant Security Deposits | 635,134 | 528,093 | ||||
Net Cash Provided by Operating Activities | 14,008,531 | 14,511,619 | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
Purchase of Manufactured Home Communities, net of Mortgages Assumed | (42,826,524) | (15,879,551) | ||||
Purchase of Investment Property and Equipment | (37,368,231) | (28,514,929) | ||||
Proceeds from Sales of Assets | 604,687 | 680,198 | ||||
Additions to Land Development | (425,356) | (216,093) | ||||
Purchase of Securities Available for Sale | (9,171,695) | (7,880,763) | ||||
Proceeds from Sales of Securities Available for Sale | 2,257,433 | 7,498,778 | ||||
Net Cash Used in Investing Activities | (86,929,686) | (44,312,360) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Proceeds from Mortgages, net of Mortgages Assumed | 100,722,000 | -0- | ||||
Net Proceeds (Payments) on Short Term Borrowings | (8,281,398) | 23,229,143 | ||||
Principal Payments of Mortgages | (19,717,525) | (3,448,553) | ||||
Financing Costs on Debt | (2,417,695) | (440,745) | ||||
Proceeds from Issuance of Common Stock, net of Reinvestments | 20,347,682 | 21,750,265 | ||||
Proceeds from Exercise of Stock Options | 151,200 | 16,260 | ||||
Preferred Dividends Paid | (5,667,441) | (5,667,441) | ||||
Common Dividends Paid, net of Reinvestments | (12,398,024) | (10,596,078) | ||||
Net Cash Provided by Financing Activities | 72,738,799 | 24,842,851 | ||||
NET DECREASE IN CASH AND CASH EQUIVALENTS | (182,356) | (4,957,890) | ||||
CASH AND CASH EQUIVALENTS – BEGINNING OF PERIOD | 8,082,792 | 7,615,143 | ||||
CASH AND CASH EQUIVALENTS – ENDING OF PERIOD | $ | 7,900,436 | $ | 2,657,253 |
UMH Properties, Inc. | Third Quarter FY 2015 Supplemental Information | 6 |
Reconciliation of Net Income to EBITDA and Net Loss Attributable
to Common Shareholders to FFO, Core FFO and Normalized FFO
(unaudited)
Three Months Ended | Nine Months Ended | |||||||||||
9/30/2015 | 9/30/2014 | 9/30/2015 | 9/30/2014 | |||||||||
Reconciliation of Net Income To EBITDA | ||||||||||||
Net Income | $ | 1,047,245 | $ | 629,271 | $ | 1,969,744 | $ | 2,674,185 | ||||
Interest Expense | 3,309,322 | 2,763,511 | 9,359,042 | 7,502,164 | ||||||||
Franchise Taxes | 88,500 | 84,000 | 265,500 | 252,000 | ||||||||
Depreciation Expense | 4,786,090 | 3,941,218 | 13,465,559 | 11,051,344 | ||||||||
Amortization of Financing Costs | 141,592 | 128,946 | 407,481 | 384,387 | ||||||||
Acquisition Costs | 154,959 | 190,942 | 449,338 | 476,121 | ||||||||
EBITDA | $ | 9,527,708 | $ | 7,737,888 | $ | 25,916,664 | $ | 22,340,201 | ||||
Reconciliation of Net Loss Attributable to Common Shareholders to Funds from Operations | ||||||||||||
Net Loss Attributable to | ||||||||||||
Common Shareholders | $ | (841,902) | $ | (1,259,876) | $ | (3,697,697) | $ | (2,993,256) | ||||
Depreciation Expense | 4,786,090 | 3,941,218 | 13,465,559 | 11,051,344 | ||||||||
(Gain) Loss on Sales of | ||||||||||||
Depreciable Assets | (2,827) | 26,843 | 66,389 | 3,292 | ||||||||
Funds from Operations ("FFO") | 3,941,361 | 2,708,185 | 9,834,251 | 8,061,380 | ||||||||
Adjustments: | ||||||||||||
Acquisition Costs | 154,959 | 190,942 | 449,338 | 476,121 | ||||||||
Cost of Early Extinguishment of Debt | -0- | -0- | 89,396 | -0- | ||||||||
Core Funds from Operations ("Core FFO") | 4,096,320 | 2,899,127 | 10,372,985 | 8,537,501 | ||||||||
Adjustments: | ||||||||||||
Gain on Sale of Securities | ||||||||||||
Transactions, net | (47,671) | (57,346) | (127,419) | (1,272,803) | ||||||||
Settlement of Memphis Mobile | ||||||||||||
City Litigation | -0- | -0- | 125,000 | -0- | ||||||||
Normalized Funds From Operations | ||||||||||||
("Normalized FFO") | $ | 4,048,649 | $ | 2,841,781 | $ | 10,370,566 | $ | 7,264,698 |
UMH Properties, Inc. | Third Quarter FY 2015 Supplemental Information | 7 |
Market Capitalization, Debt and Coverage Levels
(unaudited)
Year to Date | ||||||
9/30/2015 | 9/30/2014 | |||||
Shares Outstanding | 26,791,988 | 23,287,469 | ||||
Market Price Per Share | $ | 9.30 | $ | 9.50 | ||
Equity Market Capitalization | $ | 249,165,488 | $ | 221,230,956 | ||
Total Debt | 335,123,637 | 256,209,979 | ||||
Preferred | 91,595,000 | 91,595,000 | ||||
Total Market Capitalization | $ | 675,884,125 | $ | 569,035,935 | ||
Total Debt | $ | 335,123,637 | $ | 256,209,979 | ||
Cash and Cash Equivalents | (7,900,436) | (2,657,253) | ||||
Net Debt | 327,223,201 | 253,552,726 | ||||
Securities Available for Sale at Fair Value (Securities) | 61,436,212 | 62,367,121 | ||||
Net Debt Less Securities | $ | 265,786,989 | $ | 191,185,605 | ||
Interest Expense | $ | 9,359,042 | $ | 7,502,164 | ||
Capitalized Interest | 220,200 | 194,273 | ||||
Preferred Dividends Paid | 5,667,441 | 5,667,441 | ||||
Total Fixed Charges | $ | 15,246,683 | $ | 13,363,878 | ||
EBITDA | $ | 25,916,664 | $ | 22,340,201 | ||
DEBT AND COVERAGE RATIOS | ||||||
Net Debt / Total Market Capitalization | 48.4% | 44.6% | ||||
Net Debt + Preferred / Total Market Capitalization | 62.0% | 60.7% | ||||
Net Debt Less Securities / Total Market Capitalization | 39.3% | 33.6% | ||||
Net Debt Less Securities + Preferred / Total Market Capitalization | 52.9% | 49.7% | ||||
Interest Coverage | 2.8x | 3.0x | ||||
Fixed Charge Coverage | 1.7x | 1.7x | ||||
Net Debt / EBITDA | 9.5x | 8.5x | ||||
Net Debt Less Securities/ EBITDA | 7.7x | 6.4x | ||||
Net Debt + Preferred / EBITDA | 12.1x | 11.6x |
UMH Properties, Inc. | Third Quarter FY 2015 Supplemental Information | 8 |
Debt Analysis | ||||||
(unaudited) | ||||||
Year to Date | ||||||
9/30/2015 | 9/30/2014 | |||||
DEBT OUTSTANDING | ||||||
Mortgages Payable | $ | 265,965,805 | $ | 183,861,840 | ||
Loans Payable: | ||||||
Unsecured Line of Credit | 30,000,000 | 35,000,000 | ||||
Other Loans Payable | 39,157,832 | 37,348,139 | ||||
Total Loans Payable | 69,157,832 | 72,348,139 | ||||
Total Debt | $ | 335,123,637 | $ | 256,209,979 | ||
% FIXED/FLOATING | ||||||
Fixed | 80.5% | 68.7% | ||||
Floating | 19.5% | 31.3% | ||||
Total | 100.0% | 100.0% | ||||
WEIGHTED AVERAGE INTEREST RATES | ||||||
Mortgages Payable | 4.54% | 4.78% | ||||
Loans Payable | 3.54% | 3.05% | ||||
Total Average | 4.33% | 4.29% |
Debt Maturity
Fiscal Year Ended | Mortgages | Loans | Total | % of Total | |||||||||
2016 | $ | 8,663,101 | $ | 30,000,000 | (1) | $ | 38,663,101 | 11.5% | |||||
2017 | 41,131,521 | - | 41,131,521 | 12.3% | |||||||||
2018 | 15,932,311 | - | 15,932,311 | 4.7% | |||||||||
2019 | 3,193,305 | 4,044,410 | 7,237,715 | 2.2% | |||||||||
2020 | 12,967,923 | - | 12,967,923 | 3.9% | |||||||||
Thereafter | 184,077,644 | 35,113,422 | 219,191,066 | 65.4% | |||||||||
Total as of 09/30/2015 | $ | 265,965,805 | $ | 69,157,832 | $ | 335,123,637 | 100.0% |
Notes: | |
(1) Includes $35 million Line of Credit due March 2016, which has a one year extension option. |
UMH Properties, Inc. | Third Quarter FY 2015 Supplemental Information | 9 |
PropertySummary andSnapshot
(unaudited)
9/30/2015 | 9/30/2014 | |||||
Communities | 95 | 88 | ||||
Developed Sites | 16,540 | 15,058 | ||||
Occupied | 13,380 | 12,255 | ||||
Occupancy %(1) | 81.7% | 82.2% | ||||
Monthly Rent Per Site | $ | 414 | $ | 390 |
Monthly | |||||||||||||||||||||||||||
Rent | |||||||||||||||||||||||||||
Monthly | Rental | Per | |||||||||||||||||||||||||
Total | Developed | Vacant | Total | Occupied | Occupancy | Rent | Total | Occupied | Occupancy | Home | |||||||||||||||||
Region | Number | Acreage | Acreage | Acreage | Sites | Sites | Percentage | Per Site | Rentals | Rentals | Percentage | Rental | |||||||||||||||
(2) | (2) | (1) | (4) | ||||||||||||||||||||||||
Indiana | 6 | 345 | 296 | 49 | 1,391 | 1,171 | 84.2% | $ | 381 | 448 | 431 | 96.2% | $ | 724 | |||||||||||||
Michigan | 2 | 68 | 68 | -0- | 354 | 236 | 66.7% | $ | 411 | 91 | 81 | 89.0% | $ | 675 | |||||||||||||
New Jersey | 4 | 348 | 187 | 161 | 1,006 | 961 | 95.5% | $ | 575 | 33 | 32 | 97.0% | $ | 827 | |||||||||||||
New York | 7 | 396 | 301 | 95 | 1,130 | 897 | 79.4% | $ | 466 | 200 | 182 | 91.0% | $ | 842 | |||||||||||||
Ohio | 27 | 1,130 | 881 | 249 | 4,310 | 3,339 | 77.5% | $ | 340 | 720 | 668 | 92.8% | $ | 644 | |||||||||||||
E. Pennsylvania | 26 | 963 | 805 | 158 | 3,608 | 3,051 | 84.6% | $ | 445 | 635 | 591 | 93.1% | $ | 730 | |||||||||||||
W. Pennsylvania | 16 | 904 | 723 | 181 | 2,918 | 2,206 | 75.6% | $ | 377 | 588 | 557 | 94.7% | $ | 723 | |||||||||||||
Tennessee | 7 | 413 | 321 | 92 | 1,823 | 1,519 | 83.3% | $ | 411 | 616 | 594 | 96.4% | $ | 688 | |||||||||||||
Total as of | |||||||||||||||||||||||||||
September 30, 2015 | 95 | 4,567 | 3,582 | 985 | 16,540 | 13,380 | 81.7% | $ | 414 | 3,331 | 3,136 | 94.1% | $ | 708 | |||||||||||||
Acquisitions (3) | 3 | 316 | 265 | 51 | 1,254 | 697 | 55.6% | $ | 391 | 224 | 208 | 92.9% | $ | 657 | |||||||||||||
Grand Total | 98 | 4,883 | 3,847 | 1,036 | 17,794 | 14,077 | 79.8% | $ | 413 | 3,555 | 3,344 | 94.1% | $ | 705 |
Notes: |
(1) The 156 Vacant Sites at Memphis Mobile are not Included in the calculation of occupancy. |
(2) Total and Vacant Acreage of 220 for the Mountain View Estates property is not included in the summary since there areno current sites and approval for sites is still in process. |
(3) Acquisition of 3 communities in Indiana completed on 10/16/15. |
(4) Includes home and site rent charges. |
UMH Properties, Inc. | Third Quarter FY 2015 Supplemental Information | 10 |
SamePropertyStatistics
(unaudited)
For Three Months Ended | For Nine Months Ended | |||||||||||||||||||||
% | % | |||||||||||||||||||||
9/30/2015 | 9/30/2014 | Change | Change | 9/30/2015 | 9/30/2014 | Change | Change | |||||||||||||||
Community Net Operating Income | ||||||||||||||||||||||
Rental and Related | ||||||||||||||||||||||
Income | $ | 16,810,365 | $ | 15,278,556 | $ | 1,531,809 | 10.0% | $ | 49,031,003 | $ | 45,052,280 | $ | 3,978,723 | 8.8% | ||||||||
Community Operating | ||||||||||||||||||||||
Expenses | 7,712,375 | 7,599,526 | 112,849 | 1.5% | 23,005,129 | 23,001,640 | 3,489 | 0.0% | ||||||||||||||
Community NOI | $ | 9,097,990 | $ | 7,679,030 | $ | 1,418,960 | 18.5% | $ | 26,025,874 | $ | 22,050,640 | $ | 3,975,234 | 18.0% |
Year to Date | |||||||||||
9/30/2015 | 9/30/2014 | Change | % Change | ||||||||
OTHER INFORMATION | |||||||||||
Number of Properties | 74 | 74 | - | N/A | |||||||
Developed Acreage | 2,907 | 2,907 | - | N/A | |||||||
Vacant Acreage | 722 | 722 | - | N/A | |||||||
Total Sites | 13,262 | 13,282 | (20) | -0.2% | |||||||
Occupied Sites | 11,117 | 11,038 | 79 | 0.7% | |||||||
Occupancy % | 83.8% | 83.1% | 70 bps | 0.8% | |||||||
Monthly Rent Per Site | $ | 423 | $ | 397 | $ | 26 | 6.5% |
Notes: |
Same Property includes all properties owned as of January 1, 2014, with the exception of Memphis Mobile City. |
UMH Properties, Inc. | Third Quarter FY 2015 Supplemental Information | 11 |
Acquisition Summary | |||||||||||||
Year of | Number of | Occupied | Total | ||||||||||
Acquisition | Communities | Sites | Sites | Occupancy % | Price | Acres | |||||||
2012 | 17 | 1,727 | 1,559 | 90% | $ | 47,600,000 | 382 | ||||||
2013 | 17 | 2,738 | 2,279 | 83% | $ | 88,270,000 | 232 | ||||||
2014 | 14 | 1,612 | 1,230 | 76% | $ | 42,550,000 | 547 | ||||||
2015 to date | 10 | 2,774 | 1,764 | 64% | $ | 81,217,000 | 717 |
2015 Acquisitions
Number | |||||||||||||
Date of | Number | Purchase | of | ||||||||||
Community | Acquisition | State | of Sites | Price | Acres | Occupancy | |||||||
Holly Acres | January 21, 2015 | PA | 141 | $ | 3,800,000 | 40 | 96% | ||||||
Voyager Estates and | |||||||||||||
Huntingdon Pointe | April 23, 2015 | PA | 324 | 5,300,000 | 141 | 63% | |||||||
Valley Stream | May 27, 2015 | PA | 158 | 3,517,000 | 43 | 64% | |||||||
Candlewick Court, Catalina | |||||||||||||
and Worthington Arms | August 19, 2015 | MI,OH | 897 | 32,500,000 | 177 | 69% | |||||||
Total as of September 30, 2015 | 1,520 | 45,117,000 | 401 | 70% | |||||||||
Holiday Village, Meadows | |||||||||||||
and Woods Edge | October 16, 2015 | IN | 1,254 | 36,100,000 | 316 | 56% | |||||||
Total 2015 to Date | 2,774 | $ | 81,217,000 | 717 | 64% |
Notes: |
The above information reflects 3 acquisitions in Indiana completed on 10/16/15. |
UMH Properties, Inc. | Third Quarter FY 2015 Supplemental Information | 12 |
Marcellus and Utica Shale Region Exposure
The Marcellus and Utica Shale Regions are large natural gas fields located beneath much of Pennsylvania, Ohio, West Virginia and New York. These fields have the potential to be among the largest sources of natural gas in the world. It is also expected that the activity surrounding the development of the shale regions is to accelerate over the next few years. With the rise in development, economies in the shale region are expected to benefit from increase employment, wealth of landowners, and state and local tax revenues.
Demand for rental homes has already increased substantially over the past few years, as a result of the Marcellus and Utica shale related activity. We are meeting this demand by adding new rentals homes to our portfolio.
UMH benefits from significant exposures to the Marcellus and Utica Shale Regions with over 2,700 acres in existing communities.
Total Acreage |
Existing Home Communities
UMH Properties, Inc. | Third Quarter FY 2015 Supplemental Information | 13 |
Definitions
Investors and analysts following the real estate industry utilize funds from operations ("FFO"), core funds from operations ("Core FFO"), normalized funds from operations (“Normalized FFO”), community NOI, same property NOI, and earnings before interest, taxes, depreciation and amortization ("EBITDA"), variously defined, as supplemental performance measures. While the Company believes net income available to common stockholders, as defined by accounting principles generally accepted in the United States of America (U.S. GAAP), is the most appropriate measure, it considers Community NOI, Same Property NOI, EBITDA, FFO, and Core FFO, given their wide use by and relevance to investors and analysts, appropriate supplemental performance measures. FFO, reflecting the assumption that real estate asset values rise or fall with market conditions, principally adjusts for the effects of U.S. GAAP depreciation and amortization of real estate assets. Core FFO reflects the same assumptions as FFO except that is also adjusts for the effects of acquisitions costs. Community NOI and Same Property NOI provides a measure of rental operations, and does not factor in depreciation and amortization and non-property specific expenses such as general and administrative expenses. EBITDA provides a tool to further evaluate the ability to incur and service debt and to fund dividends and other cash needs. In addition, Community NOI, Same Property NOI, EBITDA, FFO, and Core FFO are commonly used in various ratios, pricing multiples, yields and returns and valuation of calculations used to measure financial position, performance and value.
As used herein, the Company calculates FFO, as defined by The National Association of Real Estate Investment Trusts (NAREIT), to be equal to net income (loss) applicable to common shareholders, as defined by U.S. GAAP, excluding extraordinary items as defined by U.S. GAAP, gains or losses from sales of previously depreciated real estate assets, impairment charges related to depreciable real estate assets, plus certain non-cash items such as real estate asset depreciation and amortization. FFO includes gains and losses realized on securities investments.
Core FFO is calculated as FFO plus acquisition costs and cost of early extinguishment of debt.
Normalized FFOis calculated as Core FFO excluding gains and losses realized on securities investments and certain one-time charges.
Community NOI is calculated as rental and related income less community operating expenses such as real estate taxes, repairs and maintenance, community salaries, utilities, insurance and other expenses. Community NOI excludes realized gains (losses) on securities transactions.
Same Property NOI is calculated as Community NOI, using all properties owned as of January 1, 2014, with the exception of Memphis Mobile City.
EBITDA is calculated as net income plus interest expense, franchise taxes, depreciation expense and amortization of financing costs.
Community NOI, Same Property NOI, EBITDA, FFO, Core FFO and Normalized FFO do not represent cash generated from operating activities in accordance with U.S. GAAP and are not necessarily indicative of cash available to fund cash needs, including the repayment of principal on debt and payment of dividends and distributions. Community NOI, Same Property NOI, EBITDA, FFO, Core FFO and Normalized FFO should not be considered as substitutes for net income applicable to common shareholders (calculated in accordance with U.S. GAAP) as a measure of results of operations, or cash flows (calculated in accordance with U.S. GAAP) as a measure of liquidity. Community NOI, Same Property NOI, EBITDA, FFO, Core FFO and Normalized FFO as currently calculated by the Company may not be comparable to similarly titled, but variously calculated, measures of other REITs.
UMH Properties, Inc. | Third Quarter FY 2015 Supplemental Information | 14 |
Press Release Dated November 4, 2015
FOR IMMEDIATE RELEASE | November 4, 2015 |
Contact: Nelli Madden | |
732-577-9997 |
UMH PROPERTIES, INC. REPORTS 3rd QUARTER 2015 EARNINGS
FREEHOLD, NJ, November 4, 2015........ UMH Properties, Inc. (NYSE:UMH) reported Normalized Funds from Operations Attributable to Common Shareholders (Normalized FFO) of $4,049,000 or $0.15 per diluted share for the quarter ended September 30, 2015, as compared to $2,842,000 or $0.12 per diluted share for the quarter ended September 30, 2014. Normalized FFO for the nine months ended September 30, 2015 was $10,371,000 or $0.40 per diluted share as compared to $7,265,000 or $0.33 a year ago. Core Funds from Operations (Core FFO), which includes realized gains on the sale of securities was $4,096,000 or $0.15 per diluted share for the quarter ended September 30, 2015, as compared to $2,899,000 or $0.13 per diluted share for the quarter ended September 30, 2014.
A summary of significant financial information for the three and nine months ended September 30, 2015 and 2014 is as follows:
For the Three Month Ended | ||||||
September 30, | ||||||
2015 | 2014 | |||||
Total Income | $ | 21,695,000 | $ | 18,555,000 | ||
Total Expenses | $ | 18,966,000 | $ | 16,777,000 | ||
Total Community Net Operating Income (NOI)(1) | $ | 9,633,000 | $ | 7,747,000 | ||
Gain on Securities Transactions, net | $ | 48,000 | $ | 57,000 | ||
Net Loss Attributable to Common Shareholders | $ | (842,000) | $ | (1,260,000) | ||
Net Loss Attributable to Common | $ | (0.03) | $ | (0.06) | ||
Core FFO(1) | $ | 4,096,000 | $ | 2,899,000 | ||
Core FFO(1)per Diluted Common Share | $ | 0.15 | $ | 0.13 | ||
Normalized FFO(1) | $ | 4,049,000 | $ | 2,842,000 | ||
Normalized FFO(1)per Diluted Common Share | $ | 0.15 | $ | 0.12 | ||
Weighted Average Diluted Shares Outstanding | 26,426,000 | 22,889,000 |
UMH Properties, Inc. | Third Quarter FY 2015 Supplemental Information | 15 |
For the Nine Months Ended | ||||||
September 30, | ||||||
2015 | 2014 | |||||
Total Income | $ | 59,593,000 | $ | 52,553,000 | ||
Total Expenses | $ | 52,820,000 | $ | 48,369,000 | ||
Total Community Net Operating Income (NOI)(1) | $ | 26,834,000 | $ | 21,734,000 | ||
Gain on Securities Transactions, net | $ | 127,000 | $ | 1,273,000 | ||
Net Income (Loss) Attributable to Common Shareholders | $ | (3,698,000) | $ | (2,993,000) | ||
Net Income (Loss) Attributable to Common | $ | (0.14) | $ | (0.14) | ||
Core FFO(1) | $ | 10,373,000 | $ | 8,538,000 | ||
Core FFO(1)per Diluted Common Share | $ | 0.40 | $ | 0.39 | ||
Normalized FFO(1) | $ | 10,371,000 | $ | 7,265,000 | ||
Normalized FFO(1)per Diluted Common Share | $ | 0.40 | $ | 0.33 | ||
Weighted Average Diluted Shares Outstanding | 25,641,000 | 22,096,000 |
A summary of significant balance sheet information as of September 30, 2015 and December 31, 2014 is as follows:
September 30, 2015 | December 31, 2014 | ||||||
Total Investment Property | $ | 528,682,000 | $ | 448,164,000 | |||
Securities Available for Sale at Fair Value | $ | 61,436,000 | $ | 63,556,000 | |||
Total Assets | $ | 551,135,000 | $ | 478,269,000 | |||
Mortgages Payable | $ | 265,966,000 | $ | 182,671,000 | |||
Loans Payable | $ | 69,158,000 | $ | 77,439,000 | |||
Total Shareholders’ Equity | $ | 204,616,000 | $ | 208,827,000 |
Samuel A. Landy, President and CEO, commented on the results of the third quarter of 2015:
“We are pleased with the progress achieved during the quarter. Normalized FFO per diluted share grew 25% over the prior year period from $0.12 to $0.15 currently. For the nine months, normalized FFO per diluted share increased 21.2% from $0.33 a year ago to $0.40 currently.”
“Total Community Net Operating Income (NOI) increased 24% to $9.6 million for the third quarter of 2015, as compared to $7.7 million for the same period in 2014. In addition to community acquisitions, the strength of this growth has been fueled by our rental home operations. Demand for rental homes continues to be strong and over the first three quarters of 2015, we added a total of approximately 700 units to our rental inventory. Our community operating expenses as a percent of rental and related income continues to trend down as we upgrade and integrate our acquisitions. For the current quarter this expense ratio was 49.2%, representing a 340 basis point improvement over the prior year period.”
UMH Properties, Inc. | Third Quarter FY 2015 Supplemental Information | 16 |
“Same property metrics continue to improve. Same property occupancy increased 70 basis points over the prior year period from 83.1% to 83.8% currently. Same property revenue increased 10.0% for the quarter, while expenses only increased 1.5%. This resulted in an increase in same property NOI for the quarter of 18.5% over the prior year period. For the nine months, same property NOI increased 18.0%.”
“On the acquisition front, during the first three quarters, we acquired seven manufactured home communities for an aggregate cost of $45.1 million. Subsequent to quarter-end, we acquired an additional three communities for a purchase price of $36.1 million. With the communities acquired subsequent to quarter-end, we have continued to generate substantial portfolio growth of 18% year to date. Our overall occupancy rate at quarter end was 81.7%, down 50 basis points from the prior year period. This decrease is due to our large acquisition activity which had a weighted average occupancy rate of only 70%. These communities were acquired at a going-in cap rate of approximately 7%. As we improve these communities and drive occupancy growth, our returns will be substantially higher.”
“On the mortgage front, we have obtained $101 million of new mortgage loans, $85 million net after the retirement of existing mortgages, reducing our weighted average interest rate on mortgage debt to 4.5%. Subsequent to quarter-end, we completed the financing of an additional five communities for total proceeds of approximately $39 million at a weighted average interest rate of 4.0%.”
“With respect to our capital markets activity, subsequent to quarter-end, we issued 1.8 million shares of 8% Series B Cumulative Redeemable Perpetual Preferred Stock at a purchase price of $25.00 per share. As a result, the Company received net proceeds of approximately $43.3 million which well positions us to continue our growth strategy while issuing fewer common shares going forward.”
UMH Properties, Inc. will host its Third Quarter 2015 Financial Results Webcast and Conference Call. Senior management will discuss the results, current market conditions and future outlook on Thursday, November 5, 2015 at 10:00 a.m. Eastern Time.
The Company’s 2015 third quarter financial results being released herein will be available on the Company’s website at www.umh.com in the “Financial Information and Filings” section under the “Investors” tab.
To participate in the webcast, select the “Investors” tab at the top of the Company’s website at www.umh.com, then select the microphone icon. 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 5, 2015. It will be available until February 1, 2016, and can be accessed by dialing toll free 877-344-7529 (domestically) and 412-317-0088 (internationally) and entering the passcode 10071981. A transcript of the call and the webcast replay will be available at the Company’s website, www.umh.com under the “Investors” tab.
UMH Properties, Inc. | Third Quarter FY 2015 Supplemental Information | 17 |
UMH Properties, Inc., which was organized in 1968, is a public equity REIT that owns and operates ninety-eight manufactured home communities containing approximately 17,800 developed homesites. These communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana and Michigan. In addition, the Company owns a portfolio of REIT securities.
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. Factors and risks 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 (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, plus certain non-cash items such as real estate asset depreciation and amortization. NAREIT created FFO as a non-U.S. GAAP supplemental measure of REIT operating performance. We define Core Funds From Operations (Core FFO) as FFO plus acquisition costs and costs of early extinguishment of debt. We define Normalized Funds From Operations (Normalized FFO) as Core FFO excluding gains and losses realized on securities investments and certain non-recurring charges. FFO, Core FFO and Normalized FFO, as well as Community NOI should be considered as supplemental measures of operating performance used by REITs. FFO, Core FFO and Normalized FFO exclude historical cost depreciation as an expense and may facilitate the comparison of REITs which have a different cost basis. The items excluded from FFO, Core FFO and Normalized FFO are significant components in understanding the Company’s financial performance. We defineCommunity NOI as rental and related income less community operating expenses such as real estate taxes, repairs and maintenance, community salaries, utilities, insurance and other expenses. Community NOI excludes realized gains (losses) on securities transactions.
FFO, Core FFO and Normalized FFO (i) do not represent Cash Flow from Operations as defined by U.S. GAAP; (ii) should not be considered as an alternative 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. FFO, Core FFO and Normalized FFO, as calculated by the Company, may not be comparable to similarly titled measures reported by other REITs.
UMH Properties, Inc. | Third Quarter FY 2015 Supplemental Information | 18 |
The reconciliation of the Company’s U.S. GAAP net income (loss) to the Company’s FFO, Core FFO and Normalized FFO for the three and nine months ended September 30, 2015 and 2014 are calculated as follows:
Three Months Ended | Nine Months Ended | |||||||||||
9/30/15 | 9/30/14 | 9/30/15 | 9/30/14 | |||||||||
Net Loss Attributable to Common Shareholders | $ | (842,000) | $ | (1,260,000) | $ | (3,698,000) | $ | (2,993,000) | ||||
Depreciation Expense | 4,786,000 | 3,941,000 | 13,466,000 | 11,052,000 | ||||||||
(Gain) Loss on Sales of Depreciable Assets | (3,000) | 27,000 | 66,000 | 3,000 | ||||||||
FFO Attributable to Common Shareholders | 3,941,000 | 2,708,000 | 9,834,000 | 8,062,000 | ||||||||
Acquisition Costs | 155,000 | 191,000 | 449,000 | 476,000 | ||||||||
Cost of Early Extinguishment of Debt | -0- | -0- | 90,000 | -0- | ||||||||
Core FFO Attributable to Common Shareholders | 4,096,000 | 2,899,000 | 10,373,000 | 8,538,000 | ||||||||
Gain on Sale of Securities Transactions, net | (47,000) | (57,000) | (127,000) | (1,273,000) | ||||||||
Settlement of Litigation | -0- | -0- | 125,000 | -0- | ||||||||
Normalized FFO Attributable to Common Shareholders | $ | 4,049,000 | $ | 2,842,000 | $ | 10,371,000 | $ | 7,265,000 |
The following are the cash flows provided (used) by operating, investing and financing activities for the nine months ended September 30, 2015 and 2014:
2015 | 2014 | |||||
Operating Activities | $ | 14,009,000 | $ | 14,512,000 | ||
Investing Activities | (86,930,000) | (44,312,000) | ||||
Financing Activities | 72,739,000 | 24,843,000 |
# # # #
UMH Properties, Inc. | Third Quarter FY 2015 Supplemental Information | 19 |