false 0000752642 0000752642 2024-02-28 2024-02-28 0000752642 UMH:CommonStock0.10ParValueMember 2024-02-28 2024-02-28 0000752642 UMH:Sec6.375SeriesDCumulativeRedeemablePreferredStock0.10ParValueMember 2024-02-28 2024-02-28 iso4217:USD xbrli:shares iso4217:USD xbrli:shares

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

FORM 8-K

 

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): February 28, 2024

 

 

 

UMH Properties, Inc.

(Exact name of registrant as specified in its charter)

 

 

 

Maryland   001-12690   22-1890929
(State or other jurisdiction   (Commission   (IRS Employer
of incorporation)   File Number)   Identification No.)

 

Juniper Business Plaza, 3499 Route 9 North, Suite 3-C, Freehold, NJ   07728
(Address of principal executive offices)   (Zip Code)

 

Registrant’s telephone number, including area code: (732) 577-9997

 

Not Applicable

(Former name or former address, if changed since last report.)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
☐ Soliciting material pursuant to Rule 14a- 12 under the Exchange Act (17 CFR 240.14a-12)
   
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of exchange on which registered
Common Stock, $0.10 par value   UMH   New York Stock Exchange
6.375% Series D Cumulative Redeemable Preferred Stock, $0.10 par value   UMH PD   New York Stock Exchange

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

 
 

 

Item 2.02Results of Operations and Financial Condition.

 

Item 7.01Regulation FD Disclosure.

 

On February 28, 2024, UMH Properties, Inc. issued a press release announcing the results for the fourth quarter and year ended December 31, 2023 and disclosed a supplemental information package in connection with its earnings conference call for the fourth quarter and year ended December 31, 2023. A copy of the supplemental information package and press release is furnished with this report as Exhibit 99 and is incorporated herein by reference.

 

The information in this report and the exhibit attached hereto is being furnished, not filed, for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and pursuant to Item 2.02 and Item 7.01 of Form 8-K will not be incorporated by reference into any filing under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.

 

Forward-Looking Statements

 

Statements contained in this report, including the document that is incorporated by reference, that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1995 (the “Exchange Act”). All statements, other than statements of historical facts that address activities, events or developments where the Company uses any of the words “anticipates,” “assumes,” “believes,” “estimates,” “expects,” “intends,” or similar expressions, are forward-looking statements. These forward-looking statements are not guaranteed and are based on the Company’s current intentions and on the Company’s current expectations and assumptions. These statements, intentions, expectations and assumptions involve risks and uncertainties, some of which are beyond the Company’s control that could cause actual results or events to differ materially from those that the Company anticipates or projects, such as:

 

  ● changes in the real estate market conditions and general economic conditions;
  ● the inherent risks associated with owning real estate, including local real estate market conditions, governing laws and regulations affecting manufactured housing communities and illiquidity of real estate investments;
  ● increased competition in the geographic areas in which we own and operate manufactured housing communities;
  ● our ability to continue to identify, negotiate and acquire manufactured housing communities and/or vacant land which may be developed into manufactured housing communities on terms favorable to us;
  ● our ability to maintain or increase rental rates and occupancy levels;
  ● changes in market rates of interest;
  ● inflation and increases in costs, including personnel, insurance and the cost of purchasing manufactured homes;
  ● our ability to purchase manufactured homes for rental or sale;

 

2
 

 

  ● our ability to repay debt financing obligations;
  ● our ability to refinance amounts outstanding under our credit facilities at maturity on terms favorable to us;
  ● our ability to comply with certain debt covenants;
  ● our ability to integrate acquired properties and operations into existing operations;
  ● the availability of other debt and equity financing alternatives;
  ● continued ability to access the debt or equity markets;
  ● the loss of any member of our management team;
  ● our ability to maintain internal controls and processes to ensure all transactions are accounted for properly, all relevant disclosures and filings are timely made in a timely manner in accordance with all rules and regulations, and any potential fraud or embezzlement is thwarted or detected;
  ● the ability of manufactured home buyers to obtain financing;
  ● the level of repossessions by manufactured home lenders;
  ● market conditions affecting our investment securities;
  ● changes in federal or state tax rules or regulations that could have adverse tax consequences;
  ● our ability to qualify as a real estate investment trust for federal income tax purposes; and
  ● risks and uncertainties related to the COVID-19 pandemic or other highly infectious or contagious diseases.

 

Item 9.01Financial Statements and Exhibits.

 

(d) Exhibits.

 

99 Supplemental information package for the fourth quarter and year ended December 31, 2023 and press release dated February 28, 2024.
   
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

3
 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  UMH Properties, Inc.
     
Date: February 28, 2024 By: /s/ Anna T. Chew
  Name: Anna T. Chew
  Title:

Executive Vice President and

Chief Financial Officer

 

4

 

 

Exhibit 99

 

 

 
 

 

Table of Contents

 

 

  Page
   
Financial Highlights 3
   
Consolidated Balance Sheets 4
   
Consolidated Statements of Income (Loss) 5
   
Consolidated Statements of Cash Flows 6
   
Reconciliation of Net Income (Loss) to Adjusted EBITDA excluding Non-Recurring Other Expense and Net Income (Loss) Attributable to Common Shareholders to FFO and Normalized FFO 7
   
Market Capitalization, Debt and Coverage Ratios 8
   
Debt Analysis 9
   
Debt Maturity 10
   
Securities Portfolio Performance 11
   
Property Summary and Snapshot 12
   
Same Property Statistics 13
   
Acquisitions Summary and Property Portfolio 14
   
Definitions 15
   
Press Release Dated February 28, 2024 16

 

Certain information in this Supplemental Information Package contains Non-GAAP financial measures. These Non-GAAP financial measures are REIT industry financial measures that are not calculated in accordance with accounting principles generally accepted in the United States of America. Please see page 15 for a definition of these Non-GAAP financial measures and page 7 for the reconciliation of certain captions in the Supplemental Information Package to the statement of operations as reported in the Company’s filings with the SEC on Form 10-K.

 

UMH Properties, Inc. | Fourth Quarter FY 2023 Supplemental Information2
 

 

Financial Highlights

(dollars in thousands except per share amounts) (unaudited)

 

   Three Months Ended   Year Ended 
  

December 31,

2023

  

December 31,

2022

  

December 31,

2023

  

December 31,

2022

 
Operating Information                    
Number of Communities             135    134 
Number of Sites             25,766    25,568 
Rental and Related Income  $49,246   $43,735   $189,749   $170,434 
Community Operating Expenses  $20,548   $19,485   $81,343   $75,660 
Community NOI  $28,698   $24,250   $108,406   $94,774 
Expense Ratio   41.7%   44.6%   42.9%   44.4%
Sales of Manufactured Homes  $7,738   $5,013   $31,176   $25,342 
Number of Homes Sold   77    65    341    301 
Number of Rentals Added, net   92    99    871    392 
Net Income (Loss)  $11,254   $3,659   $7,851   $(4,972)
Net Income (Loss) Attributable to Common Shareholders  $6,832   $283   $(8,714)  $(36,265)
Adjusted EBITDA excluding Non-Recurring Other Expense  $27,174   $21,807   $101,870   $89,926 
FFO Attributable to Common Shareholders  $14,595   $9,973   $51,069   $28,489 
Normalized FFO Attributable to Common Shareholders  $15,364   $11,321   $54,533   $46,840 
                     
Shares Outstanding and Per Share Data                    
Weighted Average Shares Outstanding                    
Basic   66,881    56,184    63,068    54,389 
Diluted   67,196    56,755    63,068    54,389 
Net Income (Loss) Attributable to Common Shareholders per Share –                    
Basic  $0.10   $0.01   $(0.15)  $(0.67)
Diluted  $0.10   $0.005   $(0.15)  $(0.67)
FFO per Share –                    
Diluted (1)  $0.22   $0.18   $0.80   $0.51 
Normalized FFO per Share –                    
Diluted (1)  $0.23   $0.20   $0.86   $0.85 
Dividends per Common Share  $0.205   $0.20   $0.82   $0.80 
                     
Balance Sheet                    
Total Assets            $1,427,577   $1,344,596 
Total Liabilities            $720,783   $793,400 
                     
Market Capitalization                    
Total Debt, Net of Unamortized Debt Issuance Costs            $690,017   $761,676 
Equity Market Capitalization            $1,041,422   $927,298 
Series D Preferred Stock            $290,180   $225,379 
Total Market Capitalization            $2,021,619   $1,914,353 

 

  (1) Please see Definitions on page 15.

 

UMH Properties, Inc. | Fourth Quarter FY 2023 Supplemental Information3
 

 

Consolidated Balance Sheets

(in thousands except per share amounts)

 

   December 31,   December 31, 
   2023   2022 
ASSETS          
Investment Property and Equipment          
Land  $86,497   $86,619 
Site and Land Improvements   896,568    846,218 
Buildings and Improvements   39,506    35,933 
Rental Homes and Accessories   516,470    422,818 
Total Investment Property   1,539,041    1,391,588 
Equipment and Vehicles   29,126    26,721 
Total Investment Property and Equipment   1,568,167    1,418,309 
Accumulated Depreciation   (416,309)   (363,098)
Net Investment Property and Equipment   1,151,858    1,055,211 
           
Other Assets          
Cash and Cash Equivalents   57,320    29,785 
Marketable Securities at Fair Value   34,506    42,178 
Inventory of Manufactured Homes   32,940    88,468 
Notes and Other Receivables, net   81,071    67,271 
Prepaid Expenses and Other Assets   11,729    20,011 
Land Development Costs   33,302    23,250 
Investment in Joint Venture   24,851    18,422 
Total Other Assets   275,719    289,385 
           
TOTAL ASSETS  $1,427,577   $1,344,596 
           
LIABILITIES AND SHAREHOLDERS’ EQUITY          
Liabilities          
Mortgages Payable, net of unamortized debt issuance costs  $496,483   $508,938 
Other Liabilities          
Accounts Payable   6,106    6,387 
Loans Payable, net of unamortized debt issuance costs   93,479    153,531 
Series A Bonds, net of unamortized debt issuance costs   100,055    99,207 
Accrued Liabilities and Deposits   15,117    16,852 
Tenant Security Deposits   9,543    8,485 
Total Other Liabilities   224,300    284,462 
Total Liabilities   720,783    793,400 
           
COMMITMENTS AND CONTINGENCIES          
           
Shareholders’ Equity:          
Series D- 6.375% Cumulative Redeemable Preferred Stock, $0.10 par value per share; 13,700 and 9,300 shares authorized as of December 31, 2023 and 2022, respectively; 11,607 and 9,015 shares issued and outstanding as of December 31, 2023 and 2022, respectively   290,180    225,379 
Common Stock- $0.10 par value per share: 153,714 and 154,048 shares authorized as of December 31, 2023 and 2022, respectively; 67,978 and 57,595 shares issued and outstanding as of December 31, 2023 and 2022, respectively   6,798    5,760 
Excess Stock- $0.10 par value per share: 3,000 shares authorized; no shares issued or outstanding as of December 31, 2023 and 2022   -0-    -0- 
Additional Paid-In Capital   433,106    343,189 
Undistributed Income (Accumulated Deficit)   (25,364)   (25,364)
Total UMH Properties, Inc. Shareholders’ Equity   704,720    548,964 
Non-Controlling Interest in Consolidated Subsidiaries   2,074    2,232 
Total Shareholders’ Equity   706,794    551,196 
           
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY  $1,427,577   $1,344,596 


 

UMH Properties, Inc. | Fourth Quarter FY 2023 Supplemental Information4
 

 

Consolidated Statements of Income (Loss)

 

(in thousands except per share amounts)  (unaudited)     
   Three Months Ended   Year Ended 
  

December 31,

2023

  

December 31,

2022

  

December 31,

2023

   December 31,
2022		 
INCOME:                
Rental and Related Income  $49,246   $43,735   $189,749   $170,434 
Sales of Manufactured Homes   7,738    5,013    31,176    25,342 
TOTAL INCOME   56,984    48,748    220,925    195,776 
                     
EXPENSES:                    
Community Operating Expenses   20,548    19,485    81,343    75,660 
Cost of Sales of Manufactured Homes   5,030    3,412    21,089    17,562 
Selling Expenses   1,681    1,288    6,949    5,282 
General and Administrative Expenses   5,049    5,631    19,703    18,979 
Depreciation Expense   14,448    12,766    55,719    48,769 
TOTAL EXPENSES   46,756    42,582    184,803    166,252 
                     
OTHER INCOME (EXPENSE):                    
Interest Income   1,323    1,027    4,984    4,085 
Dividend Income   573    703    2,318    2,903 
Gain (Loss) on Sales of Marketable Securities, net   -0-    (17,922)   183    6,394 
Increase (Decrease) in Fair Value of Marketable
Securities		   6,884    21,185    (3,555)   (21,839)
Other Income   232    458    1,082    1,240 
Loss on Investment in Joint Venture   (163)   (298)   (808)   (671)
Interest Expense   (7,812)   (7,587)   (32,475)   (26,439)
TOTAL OTHER INCOME (EXPENSE)   1,037    (2,434)   (28,271)   (34,327)
                     
Income (Loss) before Loss on Sales of Investment
Property and Equipment		   11,265    3,732    7,851    (4,803)
Loss on Sales of Investment Property
and Equipment		   (11)   (73)   -0-    (169)
NET INCOME (LOSS)   11,254    3,659    7,851    (4,972)
                     
Preferred Dividends   (4,472)   (3,433)   (16,723)   (23,221)
Redemption of Preferred Stock   -0-    -0-    -0-    (8,190)
Loss Attributable to Non-Controlling Interest   50    57    158    118 
                     

NET INCOME (LOSS) ATTRIBUTABLE TO

COMMON SHAREHOLDERS

  $6,832   $283   $(8,714)  $(36,265)
                     

NET INCOME (LOSS) ATTRIBUTABLE TO

COMMON SHAREHOLDERS PER SHARE –

                    
Basic  $0.10   $0.01   $(0.15)  $(0.67)
Diluted  $0.10   $0.005   $(0.15)  $(0.67)
                     

WEIGHTED AVERAGE COMMON SHARES

OUTSTANDING:

                    
Basic   66,881    56,184    63,068    54,389 
Diluted   67,196    56,755    63,068    54,389 


 

UMH Properties, Inc. | Fourth Quarter FY 2023 Supplemental Information5
 

 

Consolidated Statements of Cash Flows

(in thousands)

 

   Year Ended 
   December 31, 2023   December 31, 2022 
CASH FLOWS FROM OPERATING ACTIVITIES:          
Net Income (Loss)  $7,851   $(4,972)
Non-Cash Items Included in Net Income (Loss):          
Depreciation   55,719    48,769 
Amortization of Financing Costs   2,135    1,956 
Stock Compensation Expense   4,896    4,970 
Provision for Uncollectible Notes and Other Receivables   2,061    1,497 
Gain on Sales of Marketable Securities, net   (183)   (6,394)
Decrease in Fair Value of Marketable Securities   3,555    21,839 
Loss on Sales of Investment Property and Equipment   -0-    169 
Loss from Joint Venture   1,026    756 
Changes in Operating Assets and Liabilities:          
Inventory of Manufactured Homes   55,528    (64,809)
Notes and Other Receivables, net of notes acquired with acquisitions   (15,861)   (12,740)
Prepaid Expenses and Other Assets   4,308    (636)
Accounts Payable   (281)   2,113 
Accrued Liabilities and Deposits   (1,735)   (310)
Tenant Security Deposits   1,058    565 
Net Cash Provided by (Used in) Operating Activities   120,077    (7,227)
CASH FLOWS FROM INVESTING ACTIVITIES:          
Purchase of Manufactured Home Communities, net of mortgages assumed   (3,679)   (65,562)
Purchase of Investment Property and Equipment   (123,860)   (81,112)
Proceeds from Sales of Investment Property and Equipment   3,049    3,098 
Additions to Land Development Costs   (37,928)   (27,185)
Purchase of Marketable Securities   (23)   (19)
Proceeds from Sales of Marketable Securities   4,323    56,144 
Investment in Joint Venture   (7,455)   (10,241)
Net Cash Used in Investing Activities   (165,573)   (124,877)
CASH FLOWS FROM FINANCING ACTIVITIES:          
Proceeds from Mortgages   57,743    59,801 
Net Proceeds (Payments) from Short-Term Borrowings   (59,542)   107,280 
Principal Payments of Mortgages and Loans   (70,317)   (24,294)
Proceeds from Bond Issuance   -0-    102,670 
Financing Costs on Debt   (1,678)   (6,561)
Investments from Non-Controlling Interest   -0-    2,350 
Proceeds from At-The-Market Preferred Equity Program, net of offering costs   55,729    9,075 
Payments on Redemption of Preferred Stock   -0-    (247,100)
Proceeds from At-The-Market Common Equity Program, net of offering costs   145,789    100,752 
Proceeds from Issuance of Common Stock in the DRIP, net of dividend reinvestments   6,394    5,025 
Proceeds from Exercise of Stock Options   734    4,195 
Preferred Dividends Paid   (16,723)   (24,611)
Common Dividends Paid, net of dividend reinvestments   (49,072)   (40,628)
Net Cash Provided by Financing Activities   69,057    47,954 
           
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH   23,561    (84,150)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR   40,876    125,026 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF YEAR  $64,437   $40,876 

 

UMH Properties, Inc. | Fourth Quarter FY 2023 Supplemental Information6
 

 

Reconciliation of Net Income (Loss) to Adjusted EBITDA and Net Income (Loss) Attributable to Common Shareholders to FFO and Normalized FFO

(in thousands) (unaudited)

 

   Three Months Ended   Year Ended 
  

December 31,

2023

  

December 31,

2022

  

December 31,

2023

  

December 31,

2022

 
Reconciliation of Net Income (Loss) to Adjusted EBITDA                
                 
Net Income (Loss)  $11,254   $3,659   $7,851   $(4,972)
Interest Expense   7,812    7,587    32,475    26,439 
Franchise Taxes   130    107    432    395 
Depreciation Expense   14,448    12,766    55,719    48,769 
Depreciation Expense from Unconsolidated Joint Venture   188    114    692    371 
(Increase) Decrease in Fair Value of Marketable Securities   (6,884)   (21,185)   3,555    21,839 
(Gain) Loss on Sales of Marketable Securities, net   -0-    17,922    (183)   (6,394)
Adjusted EBITDA   26,948    20,970    100,541    86,447 
Non- Recurring Other Expense (2)   226    837    1,329    3,479 

Adjusted EBITDA without Non-recurring

Other Expense

  $27,174   $21,807   $101,870   $89,926 
                     
Reconciliation of Net Income (Loss) Attributable to Common Shareholders to Funds from Operations                    
                 
Net Income (Loss) Attributable to Common Shareholders  $6,832   $283   $(8,714)  $(36,265)
Depreciation Expense   14,448    12,766    55,719    48,769 
Depreciation Expense from Unconsolidated Joint Venture   188    114    692    371 
Loss on Sales of Investment Property and Equipment   11    73    -0-    169 
(Increase) Decrease in Fair Value of Marketable Securities   (6,884)   (21,185)   3,555    21,839 
(Gain) Loss on Sales of Marketable Securities, net   -0-    17,922    (183)   (6,394)

Funds from Operations Attributable to Common

Shareholders (“FFO”)

   14,595    9,973    51,069    28,489 
                     
Adjustments:                    
Redemption of Preferred Stock (1)   -0-    -0-    -0-    12,916 
Amortization of Financing Costs (1)   543    511    2,135    1,956 
Non- Recurring Other Expense (2)   226    837    1,329    3,479 

Normalized Funds from Operations Attributable

to Common Shareholders (“Normalized FFO”) (1)

  $15,364   $11,321   $54,533   $46,840 

 

(1)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, a non-cash expense, is expected to become more significant and is therefore included as an adjustment to Normalized FFO for the three months and years ended December 31, 2023 and 2022.
   
(2)Consists of special bonus and restricted stock grants for the August 2020 groundbreaking Fannie Mae financing, which were being expensed over the vesting period ($0 and $862, respectively) and non-recurring expenses for the joint venture with Nuveen ($42 and $135, respectively), one-time legal fees ($1 and $76, respectively), fees related to the establishment of the Opportunity Zone Fund ($0 and $37, respectively), and costs associated with acquisitions and financing that were not completed ($183 and $219, respectively) for the three months and year ended December 31, 2023. Consists of special bonus and restricted stock grants for the August 2020 groundbreaking Fannie Mae financing, which were being expensed over the vesting period ($431 and $1,724, respectively) and non-recurring expenses for the joint venture with Nuveen ($210 and $264, respectively), early extinguishment of debt ($125 and $320, respectively), one-time legal fees ($10 and $197, respectively), fees related to the establishment of the Opportunity Zone Fund ($61 and $954, respectively), and costs associated with an acquisition not completed ($0 and $20, respectively) for the three months and year ended December 31, 2022.

 

UMH Properties, Inc. | Fourth Quarter FY 2023 Supplemental Information7
 

 

Market Capitalization, Debt and Coverage Ratios

(in thousands except per share amounts) (unaudited)

 

   Year Ended 
  

December 31,

2023

  

December 31,

2022

 
Shares Outstanding   67,978    57,595 
Market Price Per Share  $15.32   $16.10 
Equity Market Capitalization  $1,041,422   $927,298 
Total Debt   690,017    761,676 
Preferred   290,180    225,379 
Total Market Capitalization  $2,021,619   $1,914,353 
           
Total Debt  $690,017   $761,676 
Less: Cash and Cash Equivalents   (57,320)   (29,785)
Net Debt   632,697    731,891 
Less: Marketable Securities at Fair Value (“Securities”)   (34,506)   (42,178)
Net Debt Less Securities  $598,191   $689,713 
           
Interest Expense  $32,475   $26,439 
Capitalized Interest   5,032    2,730 
Preferred Dividends   16,723    23,221 
Total Fixed Charges  $54,230   $52,390 
           
Adjusted EBITDA excluding Non-Recurring Other Expense  $101,870   $89,926 
           
Debt and Coverage Ratios          
           
Net Debt / Total Market Capitalization   31.3%   38.2%
           
Net Debt Plus Preferred / Total Market Capitalization   45.7%   50.0%
           
Net Debt Less Securities / Total Market Capitalization   29.6%   36.0%
           
Net Debt Less Securities Plus Preferred / Total
Market Capitalization		   43.9%   47.8%
           
Interest Coverage   2.7x   3.1x
           
Fixed Charge Coverage   1.9x   1.7x
           
Net Debt / Adjusted EBITDA excluding Non-Recurring
Other Expense		   6.2x   8.1x
           
Net Debt Less Securities / Adjusted EBITDA excluding
Non-Recurring Other Expense		   5.9x   7.7x
           
Net Debt Plus Preferred / Adjusted EBITDA excluding
Non-Recurring Other Expense		   9.1x   10.6x
           
Net Debt Less Securities Plus Preferred / Adjusted EBITDA
excluding Non-Recurring Other Expense		   8.7x   10.2x

 

UMH Properties, Inc. | Fourth Quarter FY 2023 Supplemental Information8
 

 

Debt Analysis

(dollars in thousands) (unaudited)

 

   Year Ended 
  

December 31,

2023

  

December 31,

2022

 
Debt Outstanding          
Mortgages Payable:          
Fixed Rate Mortgages  $501,135    513,709 
Unamortized Debt Issuance Costs   (4,652)   (4,771)
           
Mortgages, Net of Unamortized Debt Issuance Costs  $496,483   $508,938 
Loans Payable:          
Unsecured Line of Credit  $70,000   $75,000 
Other Loans Payable   24,683    79,226 
           
Total Loans Before Unamortized Debt Issuance Costs   94,683    154,226 
Unamortized Debt Issuance Costs   (1,204)   (695)
           
Loans, Net of Unamortized Debt Issuance Costs  $93,479   $153,531 
Bonds Payable:          
Series A Bonds  $102,670   $102,670 
Unamortized Debt Issuance Costs   (2,615)   (3,463)
           
Bonds, Net of Unamortized Debt Issuance Costs  $100,055   $99,207 
           
Total Debt, Net of Unamortized Debt Issuance Costs  $690,017   $761,676 
           
% Fixed/Floating          
Fixed   90.0%   80.0%
Floating   10.0%   20.0%
Total   100.0%   100.0%
           
Weighted Average Interest Rates (1)          
Mortgages Payable   4.17%   3.93%
Loans Payable   6.98%   6.76%
Bonds Payable   4.72%   4.72%
Total Average   4.63%   4.60%
           
Weighted Average Maturity (Years)          
Mortgages Payable   5.3    5.1 

 

  (1) Weighted average interest rates do not include the effect of unamortized debt issuance costs.

 

UMH Properties, Inc. | Fourth Quarter FY 2023 Supplemental Information9
 

 

Debt Maturity

(in thousands) (unaudited)

 

 

As of December 31, 2023:                    
Year Ended  Mortgages   Loans   Bonds   Total   % of Total 
2024  $-0-   $-0-   $-0-   $-0-    0.0%
2025   118,798    -0-    -0-    118,798    17.0%
2026   37,155    70,000(1)   -0-    107,155    15.3%
2027   39,003    -0-    102,670(2)   141,673    20.3%
2028   25,193    24,683    -0-    49,876    7.1%
Thereafter   280,986    -0-    -0-    280,986    40.2%
                          
Total Debt Before Unamortized
Debt Issuance Cost		   501,135    94,683    102,670    698,488    100.0%
                          
Unamortized Debt Issuance Cost   (4,652)   (1,204)   (2,615)   (8,471)     
                          

Total Debt, Net of Unamortized

Debt Issuance Costs

  $496,483   $93,479   $100,055   $690,017      

 

  (1) Represents $70.0 million balance outstanding on the Company’s Line of Credit due November 7, 2026, with an additional one-year option.
     
  (2) Represents $102.7 million balance outstanding of the Company’s Series A Bonds due February 28, 2027.


 

UMH Properties, Inc. | Fourth Quarter FY 2023 Supplemental Information10
 

 

Securities Portfolio Performance

(in thousands)

 

 

 

Year Ended  Securities Available for Sale   Dividend Income  

Net Realized Gain

on Sale of Securities

  

Net Realized Gain

on Sale of Securities & Dividend Income

 
2010  $28,757   $1,763   $2,028   $3,791 
2011   43,298    2,512    2,693    5,205 
2012   57,325    3,244    4,093    7,337 
2013   59,255    3,481    4,056    7,537 
2014   63,556    4,066    1,543    5,609 
2015   75,011    4,399    204    4,603 
2016   108,755    6,636    2,285    8,921 
2017   132,964    8,135    1,747    9,882 
2018   99,596    10,367    20    10,387 
2019   116,186    7,535    -0-    7,535 
2020   103,172    5,729    -0-    5,729 
2021   113,748    5,098    2,342    7,440 
2022   42,178    2,903    6,394    9,297 
2023   34,506    2,318    183    2,501 
                     
        $68,186   $27,588   $95,774 

 

UMH Properties, Inc. | Fourth Quarter FY 2023 Supplemental Information11
 

 

Property Summary and Snapshot

(unaudited)

 

   December 31, 2023   December 31, 2022   % Change 
             
Communities   135    134    0.7%
Developed Sites   25,766    25,568    0.8%
Occupied   22,330    21,626    3.3%
Occupancy %   86.7%   84.6%   210bps
Total Rentals   9,969    9,098    9.6%
Occupied Rentals   9,373    8,487    10.4%
Rental Occupancy %   94.0%   93.3%   70bps
Monthly Rent Per Site  $519   $498    4.2%
Monthly Rent Per Home Rental Including Site  $933   $873    6.9%

 

State  Number   Total Acreage   Developed Acreage   Vacant Acreage   Total Sites  

Occupied

Sites

   Occupancy Percentage   Monthly Rent Per Site   Total Rentals   Occupied Rentals   Rental Occupancy
Percentage		  

Monthly Rent Per

Home Rental

 
       (1)       (1)                               (2) 
                                                 
Alabama   2    69    62    7    325    127    39.1%  $189    106    96    90.6%  $1,030 
Georgia   1    26    26    -0-    118    1    0.8%  $450    1    1    100.0%  $1,200 
Indiana   14    1,105    908    197    4,021    3,557    88.5%  $476    1,913    1,799    94.0%  $946 
Maryland   1    77    29    48    63    62    98.4%  $621    -0-    -0-    N/A    N/A 
Michigan   4    241    222    19    1,088    916    84.2%  $486    382    354    92.7%  $954 
New Jersey   5    390    226    164    1,266    1,217    96.1%  $694    45    38    84.4% $1,212 
New York   8    698    327    371    1,364    1,170    85.8%  $612    473    440    93.0% $1,080 
Ohio   38    2,044    1,515    529    7,296    6,350    87.0%  $478    2,920    2,763    94.6% $895 
Pennsylvania   53    2,348    1,894    454    7,961    6,927    87.0%  $545    3,101    2,896    93.4% $930 
South Carolina   2    63    55    8    322    180    55.9%  $212    121    106    87.6% $969 
Tennessee   7    710    373    337    1,942    1,823    93.9%  $537    907    880    97.0% $945 

Total as of

December 31, 2023

   135    7,771    5,637    2,134    25,766    22,330    86.7%  $519    9,969    9,373    94.0%  $933 

 

  (1) Total and Vacant Acreage of 220 for Mountain View Estates property is included in the above summary.
  (2) Includes home and site rent charges.

 

UMH Properties, Inc. | Fourth Quarter FY 2023 Supplemental Information12
 

 

Same Property Statistics

(in thousands) unaudited)

 

   Three Months Ended   Year Ended 
  

December 31,

2023

  

December 31,

2022

   Change   %
Change		  

December 31,

2023

  

December 31,

2022

   Change   %
Change		 
Community Net Operating Income                                        
                                         
Rental and Related
Income		  $47,326   $42,678   $4,648    10.9%  $182,944   $167,798   $15,146    9.0%
Community Operating
Expenses		   18,225    18,193    32    0.2%   73,733    70,741    2,992    4.2%
                                         
Community NOI  $29,101   $24,485   $ 4,616    18.9%  $109,211   $97,057   $12,154    12.5%

 

  

December 31,

2023

  

December 31,

2022

   Change 
             
Total Sites   23,958    23,886    0.3%
Occupied Sites   21,212    20,580    632 sites, 3.1%
Occupancy %   88.5%   86.2%   230 bps 
Number of Properties   126    126    N/A 
Total Rentals   9,743    8,988    8.4%
Occupied Rentals   9,165    8,392    9.2%
Rental Occupancy   94.1%   93.4%   70 bps 
Monthly Rent Per Site  $524   $502    4.4%
Monthly Rent Per Home Including Site  $930   $872    6.7%

 

Same Property includes all properties owned as of January 1, 2022, with the exception of Memphis Blues and Duck River Estates.

 

UMH Properties, Inc. | Fourth Quarter FY 2023 Supplemental Information13
 

 

Acquisitions Summary

(dollars in thousands)

 

Year of Acquisition  Number of Communities   Sites  

Occupancy %

at Acquisition

  

Purchase

Price

  

Price

Per Site

   Total Acres 
2021   3   543    59%  $18,300   $34    113 
2022   7   1,480    65%  $86,223   $58    461 
2023   1   118    -0-%  $3,650   $31    26 

 

 

2023 Acquisitions

 

Community  Date of Acquisition   State   Number of Sites   Purchase Price   Number of Acres   Occupancy 
Mighty Oak  January 19, 2023    GA    118   $3,650    26    -0-%
Total 2023            118   $3,650    26    -0-%

 

UMH Properties, Inc. | Fourth Quarter FY 2023 Supplemental Information14
 

 

Definitions

 

Investors and analysts following the real estate industry utilize funds from operations available to common shareholders (“FFO”), normalized funds from operations available to common shareholders (“Normalized FFO”), community NOI, same property NOI, and earnings before interest, taxes, depreciation, amortization and acquisition costs (“Adjusted EBITDA excluding Non-Recurring Other Expense”), variously defined, as supplemental performance measures. While the Company believes net income (loss) available to common shareholders, 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, Adjusted EBITDA excluding Non-Recurring Other Expense, FFO and Normalized 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. FFO also adjusts for the effects of the change in the fair value of marketable securities and gains and losses realized on marketable securities. Normalized FFO reflects the same assumptions as FFO except that it also adjusts for amortization of financing costs and certain one-time charges. Community NOI and Same Property NOI provide a measure of rental operations and do not factor in depreciation and amortization and non-property specific expenses such as general and administrative expenses. Adjusted EBITDA excluding Non-Recurring Other Expense 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, Adjusted EBITDA excluding Non-Recurring Other Expense, FFO and Normalized FFO are commonly used in various ratios, pricing multiples, yields and returns and valuation of calculations used to measure financial position, performance and value.

 

FFO, as defined by The National Association of Real Estate Investment Trusts (“NAREIT”), is calculated to be equal to net income (loss) applicable to common shareholders, as defined by 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 and change in the fair value of marketable securities from our FFO calculation. NAREIT created FFO as a non-GAAP supplemental measure of REIT operating performance.

 

Normalized FFO is calculated as FFO excluding amortization and certain one-time charges.

 

Normalized FFO per Diluted Common Share is calculated using diluted weighted shares outstanding of 67.2 million and 63.7 million shares for the three months and year ended December 31, 2023, respectively, and 56.8 million and 55.3 million shares for the three months and year ended December 31, 2022, respectively. Common stock equivalents resulting from stock options in the amount of 613,000 shares and 936,000 shares for the years ended December 31, 2023 and 2022, respectively, were excluded from the computation of Diluted Net Income (Loss) per Share as their effect would have been anti-dilutive. Common stock equivalents resulting from stock options in the amount of 315,000 shares and 571,000 shares for the three months ended December 31, 2023 and 2022, respectively, were included in the computation of Diluted Net Income (Loss) per share.

 

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.

 

Same Property NOI is calculated as Community NOI, using all properties owned as of January 1, 2022, with the exception of Memphis Blues and Duck River Estates.

 

Adjusted EBITDA excluding Non-Recurring Other Expense is calculated as net income (loss) plus interest expense, franchise taxes, depreciation, the change in the fair value of marketable securities and the gain (loss) on sales of marketable securities, adjusted for non-recurring other expenses.

 

Community NOI, Same Property NOI, Adjusted EBITDA excluding Non-Recurring Other Expense, 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, Adjusted EBITDA excluding Non-Recurring Other Expense, FFO and Normalized FFO should not be considered as substitutes for net income (loss) 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, Adjusted EBITDA excluding Non-Recurring Other Expense, 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. | Fourth Quarter FY 2023 Supplemental Information15
 

 

Press Release Dated February 28, 2024

 

FOR IMMEDIATE RELEASE

 February 28, 2024
  Contact: Nelli Madden
  732-577-9997

 

UMH PROPERTIES, INC. REPORTS RESULTS FOR THE FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 2023

 

FREEHOLD, NJ, February 28, 2024…..... UMH Properties, Inc. (NYSE:UMH) (TASE:UMH) reported Total Income of $220.9 million for the year ended December 31, 2023 as compared to $195.8 million for the year ended December 31, 2022, representing an increase of 13%. Total Income for the quarter ended December 31, 2023 was $57.0 million as compared to $48.7 million for the quarter ended December 31, 2022, representing an increase of 17%. Net Loss Attributable to Common Shareholders amounted to $8.7 million or $0.15 per diluted share for the year ended December 31, 2023 as compared to $36.3 million or $0.67 per diluted share for the year ended December 31, 2022. Net Income Attributable to Common Shareholders amounted to $6.8 million or $0.10 per diluted share for the quarter ended December 31, 2023 as compared to $283,000 or $0.005 per diluted share for the quarter ended December 31, 2022.

 

Funds from Operations Attributable to Common Shareholders (“FFO”) was $51.1 million or $0.80 per diluted share for the year ended December 31, 2023 as compared to $28.5 million or $0.51 per diluted share for the year ended December 31, 2022. FFO was $14.6 million or $0.22 per diluted share for the quarter ended December 31, 2023 as compared to $10.0 million or $0.18 per diluted share for the quarter ended December 31, 2022. Normalized Funds from Operations Attributable to Common Shareholders (“Normalized FFO”), was $54.5 million or $0.86 per diluted share for the year ended December 31, 2023, as compared to $46.8 million or $0.85 per diluted share for the year ended December 31, 2022. Normalized FFO was $15.4 million or $0.23 per diluted share for the quarter ended December 31, 2023, as compared to $11.3 million or $0.20 per diluted share for the quarter ended December 31, 2022.

 

A summary of significant financial information for the three months and year ended December 31, 2023 and 2022 is as follows (in thousands except per share amounts):

 

   For the Three Months Ended 
   December 31, 
   2023   2022 
         
Total Income  $56,984   $48,748 
Total Expenses  $46,756   $42,582 
Net Income Attributable to Common Shareholders  $6,832   $283 
Net Income Attributable to Common
Shareholders per Diluted Common Share		  $0.10   $0.005 
FFO (1)  $14,595   $9,973 
FFO (1) per Diluted Common Share  $0.22   $0.18 
Normalized FFO (1)  $15,364   $11,321 
Normalized FFO (1) per Diluted Common Share  $0.23   $0.20 
Weighted Average Shares Outstanding   67,196    56,755 

 

UMH Properties, Inc. | Fourth Quarter FY 2023 Supplemental Information16
 

 

   For the Year Ended 
   December 31, 
   2023   2022 
         
Total Income  $220,925   $195,776 
Total Expenses  $184,803   $166,252 
Net Loss Attributable to Common Shareholders  $(8,714)  $(36,265)
Net Loss Attributable to Common Shareholders
per Diluted Common Share		  $(0.15)  $(0.67)
FFO (1)  $51,069   $28,489 
FFO (1) per Diluted Common Share  $0.80   $0.51 
Normalized FFO (1)  $54,533   $46,840 
Normalized FFO (1) per Diluted Common Share  $0.86   $0.85 
Weighted Average Shares Outstanding   63,068    54,389 

 

 

A summary of significant balance sheet information as of December 31, 2023 and 2022 is as follows (in thousands):

 

   December 31, 2023   December 31, 2022 
         
Gross Real Estate Investments  $1,539,041   $1,391,588 
Marketable Securities at Fair Value  $34,506   $42,178 
Total Assets  $1,427,577   $1,344,596 
Mortgages Payable, net  $496,483   $508,938 
Loans Payable, net  $93,479   $153,531 
Bonds Payable, net  $100,055   $99,207 
Total Shareholders’ Equity  $706,794   $551,196 

 

Samuel A. Landy, President and CEO, commented on the 2023 results.

 

“During 2023, UMH made substantial progress on multiple fronts – generating solid operating results, achieving strong growth and improving our financial position. We have:

 

●Increased Rental and Related Income by 11%;
●Increased Community Net Operating Income (“NOI”) by 14%;
●Increased Normalized Funds from Operations (“Normalized FFO) by 16%;
●Increased Same Property NOI by 13%;
●Increased Same Property Occupancy by 230 basis points from 86.2% to 88.5%;
●Improved our Same Property expense ratio from 42.2% at yearend 2022 to 40.3% at yearend 2023;
●Increased our rental home portfolio by 871 homes from yearend 2022 to approximately 10,000 total rental homes, representing an increase of 10% from yearend 2022;
●Increased Sales of Manufactured Homes by 23%;
●Acquired our first community in Georgia, containing 118 developed homesites, for a total cost of $3.7 million through our qualified opportunity zone fund;
●Entered into a new joint venture agreement with Nuveen Real Estate to develop a 113-site community in Honey Brook, Pennsylvania;
●Amended our unsecured credit facility to expand available borrowing capacity from $100 million to $180 million;
●Entered into a $25 million term loan and a $25 million line of credit secured by rental homes and their leases;
●Expanded our revolving line of credit secured by eligible notes receivable from $20 million to $35 million;
●Financed eight existing communities for total proceeds of approximately $57.7 million;
●Raised our quarterly common stock dividend by 2.5% to $0.205 per share or $0.82 annually;
●Increased our Total Market Capitalization by 6% to over $2 billion at yearend;
●Increased our Equity Market Capitalization by 12% to over $1 billion at yearend;
●Reduced our Net Debt to Total Market Capitalization from 38.2% in 2022 to 31.3% in 2023;

 

UMH Properties, Inc. | Fourth Quarter FY 2023 Supplemental Information17
 

 

●Issued and sold approximately 9.4 million shares of Common Stock through At-the-Market Sale Programs at a weighted average price of $15.81 per share, generating gross proceeds of $148.6 million and net proceeds of $145.8 million, after offering expenses;
●Issued and sold approximately 2.6 million shares of Series D Preferred Stock through At-the-Market Sale Programs at a weighted average price of $21.88 per share, generating gross proceeds of $56.7 million and net proceeds of $55.7 million, after offering expenses;
●Subsequent to year end, issued and sold approximately 1.2 million shares of Common Stock through our 2023 Common Stock At-the-Market Sale Program at a weighted average price of $15.37 per share, generating gross proceeds of $19.2 million and net proceeds of $18.9 million, after offering expenses; and
●Subsequent to year end, issued and sold approximately 121,000 shares of Series D Preferred Stock through our 2023 Series D Preferred Stock At-the-Market Sale Program at a weighted average price of $22.85 per share, generating gross proceeds of $2.8 million and net proceeds of $2.7 million, after offering expenses.”

 

“UMH is pleased to report fourth quarter Normalized FFO of $0.23 per share as compared to $0.20 per share in the prior year period, representing an increase of approximately 15%. UMH is strategically positioned to continue to increase earnings through the execution of our long-term business plan. We have been acquiring vacant sites and land for development in desirable locations which have allowed us to rapidly fill and develop our communities. The success of our investments in value-add communities and our expansions is demonstrated through our operating results.”

 

“During 2023, we achieved a 23% increase in gross sales, installed and occupied over 1,000 new rental homes, improved same property occupancy by 230 basis points and increased same property net operating income by 13%, or $12.2 million. Our communities continue to experience strong demand for both sales and rentals. We anticipate delivering similar operating results in 2024, which should result in per share earnings growth.”

 

“After a two-year disruption from the COVID supply chain-related issues, abnormally high inventory levels and rising interest rates, we believe we are back on track to deliver exceptional property operating performance and reliable earnings per share growth. Our financials have been impacted by higher interest rates and inventory carrying costs, but we are pleased with our year over year normalized earnings per share growth, our quarter over quarter normalized per share growth and our three sequential quarters of earnings per share growth.”

 

“Our exceptional team has positioned the company to deliver organic growth in earnings and operating results through the infill of our 3,400 vacant lots and the development of our 2,100 acres of vacant land. We look forward to the continued execution of our long-term business plan and generating value and exceptional returns for our shareholders.”

 

UMH Properties, Inc. will host its Fourth Quarter and Year Ended December 31, 2023 Financial Results Webcast and Conference Call. Senior management will discuss the results, current market conditions and future outlook on Thursday, February 29, 2024 at 10:00 a.m. Eastern Time.

 

The Company’s fourth quarter and year ended December 31, 2023 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 microphone icon found on the homepage www.umh.reit to access the call. 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, February 29, 2024 and can be accessed by dialing toll free 877-344-7529 (domestically) and 412-317-0088 (internationally) and entering the passcode 5824602. 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 25,800 developed homesites. These communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Michigan, Maryland, 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.

 

UMH Properties, Inc. | Fourth Quarter FY 2023 Supplemental Information18
 

 

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 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. FFO and Normalized FFO, as calculated by the Company, may not be comparable to similarly titled measures reported by other REITs.

 

The reconciliation of the Company’s U.S. GAAP net income (loss) to the Company’s FFO and Normalized FFO for the three months and year ended December 31, 2023 and 2022 are calculated as follows (in thousands):

 

   Three Months Ended   Year Ended 
   December 31, 2023  

December 31, 2022

  

December 31, 2023

  

December 31, 2022

 
Net Income (Loss) Attributable to Common Shareholders  $6,832   $283   $(8,714)  $(36,265)
Depreciation Expense   14,448    12,766    55,719    48,769 
Depreciation Expense from Unconsolidated Joint Venture   188    114    692    371 
Loss on Sales of Investment Property and Equipment   11    73    -0-    169 
(Increase) Decrease in Fair Value of Marketable Securities   (6,884)   (21,185)   3,555    21,839 
(Gain) Loss on Sales of Marketable Securities, net   -0-    17,922    (183)   (6,394)
FFO Attributable to Common Shareholders   14,595    9,973    51,069    28,489 
Redemption of Preferred Stock (2)   -0-    -0-    -0-    12,916 
Amortization (2)   543    511    2,135    1,956 
Non-Recurring Other Expense (3)   226    837    1,329    3,479 
Normalized FFO Attributable to Common Shareholders  $15,364   $11,321   $54,533   $46,840 

 

The diluted weighted shares outstanding used in the calculation of FFO per Diluted Common Share and Normalized FFO per Diluted Common Share were 67.2 million and 63.7 million shares for the three months and year ended December 31, 2023, respectively, and 56.8 million and 55.3 million shares for the three months and year ended December 31, 2022, respectively. Common stock equivalents resulting from stock options in the amount of 613,000 shares and 936,000 shares for the years ended December 31, 2023 and 2022, respectively, were excluded from the computation of Diluted Net Income (Loss) per Share as their effect would have been anti-dilutive. Common stock equivalents resulting from stock options in the amount of 315,000 shares and 571,000 shares for the three months ended December 31, 2023 and 2022, respectively, were included in the computation of Diluted Net Income (Loss) per share.

 

UMH Properties, Inc. | Fourth Quarter FY 2023 Supplemental Information19
 

 

(2)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, a non-cash expense, is expected to become more significant and is therefore included as an adjustment to Normalized FFO for the three months and years ended December 31, 2023 and 2022.

 

(3)Consists of special bonus and restricted stock grants for the August 2020 groundbreaking Fannie Mae financing, which were being expensed over the vesting period ($0 and $862, respectively) and non-recurring expenses for the joint venture with Nuveen ($42 and $135, respectively), one-time legal fees ($1 and $76, respectively), fees related to the establishment of the Opportunity Zone Fund ($0 and $37, respectively), and costs associated with acquisitions and financing that were not completed ($183 and $219, respectively) for the three months and year ended December 31, 2023. Consists of special bonus and restricted stock grants for the August 2020 groundbreaking Fannie Mae financing, which were being expensed over the vesting period ($431 and $1,724, respectively) and non-recurring expenses for the joint venture with Nuveen ($210 and $264, respectively), early extinguishment of debt ($125 and $320, respectively), one-time legal fees ($10 and $197, respectively), fees related to the establishment of the Opportunity Zone Fund ($61 and $954, respectively), and costs associated with an acquisition not completed ($0 and $20, respectively) for the three months and year ended December 31, 2022.

 

The following are the cash flows provided by (used in) operating, investing and financing activities for the year ended December 31, 2023 and 2022 (in thousands):

 

 

   2023   2022 
Operating Activities  $120,077   $(7,227)
Investing Activities   (165,573)   (124,877)
Financing Activities   69,057    47,954 

 

# # # #

 

 

UMH Properties, Inc. | Fourth Quarter FY 2023 Supplemental Information20

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Feb. 28, 2024
Document Type 8-K
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Document Period End Date Feb. 28, 2024
Entity File Number 001-12690
Entity Registrant Name UMH Properties, Inc.
Entity Central Index Key 0000752642
Entity Tax Identification Number 22-1890929
Entity Incorporation, State or Country Code MD
Entity Address, Address Line One Juniper Business Plaza
Entity Address, Address Line Two 3499 Route 9 North
Entity Address, Address Line Three Suite 3-C
Entity Address, City or Town Freehold
Entity Address, State or Province NJ
Entity Address, Postal Zip Code 07728
City Area Code (732)
Local Phone Number 577-9997
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Information, Former Legal or Registered Name Not Applicable
Common Stock, $0.10 par value  
Title of 12(b) Security Common Stock, $0.10 par value
Trading Symbol UMH
Security Exchange Name NYSE
6.375% Series D Cumulative Redeemable Preferred Stock, $0.10 par value  
Title of 12(b) Security 6.375% Series D Cumulative Redeemable Preferred Stock, $0.10 par value
Trading Symbol UMH PD
Security Exchange Name NYSE
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