UMH Properties, Inc. (NYSE:UMH) (TASE:UMH) reported Total Income
for the quarter ended March 31, 2023 of $52.6 million as compared
to $45.9 million for the quarter ended March 31, 2022, representing
an increase of 15%. Net Loss Attributable to Common Shareholders
amounted to $5.3 million or $0.09 per diluted share for the quarter
ended March 31, 2023 as compared to a Net Loss of $4.3 million or
$0.09 per diluted share for the quarter ended March 31, 2022.
Funds from Operations Attributable to Common
Shareholders (“FFO”), was $10.6 million or $0.18 per diluted share
for the quarter ended March 31, 2023 as compared to $8.5 million or
$0.16 per diluted share for the quarter ended March 31, 2022,
representing a 13% per diluted share increase. Normalized Funds
from Operations Attributable to Common Shareholders (“Normalized
FFO”), was $11.7 million or $0.20 per diluted share for the quarter
ended March 31, 2023, as compared to $10.4 million or $0.19 per
diluted share for the quarter ended March 31, 2022, representing a
5% per diluted share increase.
A summary of significant financial information
for the three months ended March 31, 2023 and 2022 is as follows
(in thousands except per share amounts):
|
|
|
For the
Three Months Ended |
|
|
|
March
31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
Total
Income |
$ |
52,607 |
|
|
$ |
45,868 |
|
|
Total
Expenses |
$ |
45,240 |
|
|
$ |
37,824 |
|
|
Gain
(Loss) on Sales on Marketable Securities, net |
$ |
(42 |
) |
|
$ |
30,721 |
|
|
Decrease
in Fair Value of Marketable Securities |
$ |
(2,395 |
) |
|
$ |
(31,750 |
) |
|
Net Loss
Attributable to Common Shareholders |
$ |
(5,297 |
) |
|
$ |
(4,325 |
) |
|
Net Loss
Attributable to Common Shareholders per Diluted Common Share |
$ |
(0.09 |
) |
|
$ |
(0.09 |
) |
|
FFO
(1) |
$ |
10,640 |
|
|
$ |
8,544 |
|
|
FFO (1)
per Diluted Common Share |
$ |
0.18 |
|
|
$ |
0.16 |
|
|
Normalized FFO (1) |
$ |
11,720 |
|
|
$ |
10,413 |
|
|
Normalized FFO (1) per Diluted Common Share |
$ |
0.20 |
|
|
$ |
0.19 |
|
|
Diluted
Weighted Average Shares Outstanding |
|
59,085 |
|
|
|
52,301 |
|
A summary of significant balance sheet information as of March
31, 2023 and December 31, 2022 is as follows (in
thousands):
|
March 31, 2023 |
|
December 31,2022 |
|
|
|
|
Gross Real
Estate Investments |
$ |
1,420,267 |
|
$ |
1,391,588 |
Marketable
Securities at Fair Value |
$ |
39,285 |
|
$ |
42,178 |
Total
Assets |
$ |
1,370,341 |
|
$ |
1,344,596 |
Mortgages
Payable, net |
$ |
460,943 |
|
$ |
508,938 |
Loans
Payable, net |
$ |
191,102 |
|
$ |
153,531 |
Bonds
Payable, net |
$ |
99,419 |
|
$ |
99,207 |
Total
Shareholders’ Equity |
$ |
591,394 |
|
$ |
551,196 |
Samuel A. Landy, President and CEO, commented on
the results of the first quarter of 2023.
“We are pleased to announce another solid
quarter of operating results and an excellent start to 2023. During
the quarter, we:
- Increased Rental and Related Income
by 9%;
- Increased Sales of Manufactured
Homes by 70%;
- Increased Community Net Operating
Income (“NOI”) by 7%;
- Increased Same Property NOI by
6%;
- Increased Same Property Occupancy
by 100 basis points from 86.0% to 87.0%;
- Decreased our Same Property expense
ratio sequentially from 42.6% in the fourth quarter of 2022 to
42.1% at quarter end;
- Increased our rental home portfolio
by 230 homes from yearend 2022 to approximately 9,300 total rental
homes, representing an increase of 3%;
- Acquired one newly developed
community containing 118 homesites for a total cost of
approximately $3.7 million through our qualified opportunity zone
fund;
- Raised our quarterly common stock
dividend by 2.5% to $0.205 per share or $0.82 annually;
- Amended our unsecured credit
facility to expand available borrowings from $100 million to $180
million;
- Issued and sold approximately 2.1
million shares of Common Stock through our At-the-Market Sale
Program at a weighted average price of $16.83 per share, generating
gross proceeds of $34.8 million and net proceeds of $34.3 million,
after offering expenses;
- Issued and sold approximately
874,000 shares of Series D Preferred Stock through our
At-the-Market Sale Programs at a weighted average price of $22.52
per share, generating gross proceeds of $19.7 million and net
proceeds of $19.3 million, after offering expenses;
- Subsequent to year end, issued and
sold approximately 688,000 shares of Common Stock through our
At-the-Market Sale Programs at a weighted average price of $15.03
per share, generating gross proceeds of $10.3 million and net
proceeds of $10.2 million, after offering expenses; and
- Subsequent to year end, issued and
sold approximately 278,000 shares of Series D Preferred Stock
through our At-the-Market Sale Program at a weighted average price
of $21.76 per share, generating gross proceeds of $6.0 million and
net proceeds of $5.9 million, after offering expenses.”
Mr. Landy stated, “Demand for affordable housing
in our markets remains robust. During the quarter, we converted 230
homes in inventory to rental units and increased our sales of
manufactured homes by 70%. This generated a 100-basis point
improvement in same property occupancy, but it is not fully
reflected in our first quarter revenue as the majority of the
occupancy gains occurred in March. This increase in occupancy,
together with rent increases implemented in the first quarter,
generated an increase in monthly rental charges of approximately
$550,000 as of April 1, 2023, compared to January 1,
2023.”
“Our homes in inventory are located in high
demand areas that will allow us to achieve rapid occupancy gains
through the infill of rental units. It will also allow us to
generate additional sales and sales profits. Our sales results for
the quarter were exceptional. Our gross margin improved from 30% to
32% year over year and our net sales income increased by 129%
despite the elevated interest expense.”
“Our same property operating results are
in line with our expectations. Revenue for the quarter increased by
6.1% with 6.8% expense growth and 5.6% NOI growth. Our occupancy
gains during the quarter and our availability of inventory in good
locations give us the ability to achieve high single digit NOI
growth this year.”
“One year ago, our results were impacted by a
lack of inventory for sale and rent which resulted in limited
revenue growth for most of last year. We now have new home
inventory in place that will allow us to drive significant earnings
growth this year. Interest costs are currently impacting our
results, but backlogs have subsided. This change will allow us to
order, receive and fully set up homes within two to four months of
ordering them which will dramatically reduce our need to carry
inventory and reduce our interest expense.”
“We have a proven business plan that has and
should continue to generate long-term value for our
shareholders.”
UMH Properties, Inc. will host its First Quarter
2023 Financial Results Webcast and Conference Call. Senior
management will discuss the results, current market conditions and
future outlook on Wednesday, May 10, 2023, at 10:00 a.m. Eastern
Time.
The Company’s 2023 first 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 Wednesday, May 10, 2023,
and can be accessed by dialing toll free 877-344-7529
(domestically) and 412-317-0088 (internationally) and entering the
passcode 7162415. 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 135
manufactured home communities containing approximately 25,700
developed homesites. These communities are located in New Jersey,
New York, Ohio, Pennsylvania, Tennessee, Indiana, Maryland,
Michigan, Alabama, South Carolina and Georgia. UMH also has an
ownership interest in and operates two communities in Florida,
containing 363 sites, through its joint venture with Nuveen Real
Estate.
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.
Note:
(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 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 amortization and 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 diluted weighted shares outstanding used in
the calculation of FFO per Diluted Common Share and Normalized FFO
per Diluted Common Share were 59.8 million shares for the three
months ended March 31, 2023 and 53.7 million shares for the three
months ended March 31, 2022. Common stock equivalents resulting
from stock options in the amount of 682,000 shares for the three
months ended March 31, 2023 and 1.4 million shares for the three
months ended March 31, 2022 were excluded from the computation of
Diluted Net Loss per Share as their effect would have been
anti-dilutive.
The reconciliation of the Company’s U.S. GAAP
net loss to the Company’s FFO and Normalized FFO for the three
months ended March 31, 2023 and 2022 are calculated as follows (in
thousands):
|
|
Three Months Ended |
|
|
|
|
March 31, 2023 |
|
March 31, 2022 |
|
|
Net Loss
Attributable to Common Shareholders |
|
$ |
(5,297 |
) |
|
$ |
(4,325 |
) |
|
|
Depreciation
Expense |
|
|
13,373 |
|
|
11,717 |
|
|
|
Depreciation
Expense from Unconsolidated Joint Venture |
|
|
159 |
|
|
81 |
|
|
|
(Gain) Loss
on Sales of Investment Property and Equipment |
|
|
(32 |
) |
|
42 |
|
|
|
Decrease in
Fair Value of Marketable Securities |
|
|
2,395 |
|
|
|
31,750 |
|
|
|
(Gain) Loss
on Sales of Marketable Securities, net |
|
|
42 |
|
|
|
(30,721 |
) |
|
|
FFO
Attributable to Common Shareholders |
|
|
10,640 |
|
|
|
8,544 |
|
|
|
Redemption
of Preferred Stock (2) |
|
-0- |
|
|
1,032 |
|
|
|
Amortization
of Financing Costs(2) |
|
|
518 |
|
|
|
406 |
|
|
|
Non-Recurring Other Expense (3) |
|
|
562 |
|
|
|
431 |
|
|
|
Normalized FFO Attributable to Common Shareholders
(2) |
|
$ |
11,720 |
|
|
$ |
10,413 |
|
|
|
|
|
|
|
|
|
|
- Normalized FFO as
previously reported for the three months ended March 31, 2022, was
$8,975, or $0.17 per diluted share. During 2022, the Company
incurred the carrying cost of excess cash for the redemption of
preferred stock. Additionally, due to the change in sources of
capital, amortization expense is expected to become more
significant and is therefore included as an adjustment to
Normalized FFO for the three months ended March 31, 2023 and 2022.
After making these adjustments for the three months ended March 31,
2022, Normalized FFO was $10,413, or $0.19 per diluted share.
- Consists of special bonus and
restricted stock grants for the August 2020 groundbreaking Fannie
Mae financing, which are being expensed over the vesting period
($431) and non-recurring expenses for the joint venture with Nuveen
($47), one-time legal fees ($20), fees related to the establishment
of the OZ Fund ($33), and costs associated with an acquisition that
was not completed ($31) for the three months ended March 31, 2023.
Consists of special bonus and restricted stock grants for the
August 2020 groundbreaking Fannie Mae financing, which are being
expensed over the vesting period for the three months ended March
31, 2022.
The following are the cash flows provided by
(used in) operating, investing and financing activities for the
three months ended March 31, 2023 and 2022 (in
thousands):
|
|
|
2023 |
|
|
|
2022 |
|
Operating
Activities |
$ |
12,940 |
|
|
$ |
5,608 |
|
Investing
Activities |
|
(40,195 |
) |
|
|
34,617 |
|
Financing
Activities |
|
29,440 |
|
|
|
138,461 |
Contact: Nelli
Madden732-577-9997
# # # #
UMH Properties (NYSE:UMH)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
UMH Properties (NYSE:UMH)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024