UMH Properties (UMH) Reports Q4 Loss of $0.87, Revenues Beat

UMH Properties (NYSE: UMH) reported Q4 EPS of ($0.87), versus ($0.03) reported last year. Revenue for the quarter came in at $34.25 million versus the consensus estimate of $33.7 million.

• Generated a 12% increase in Normalized FFO per share;
• Increased Rental and Related Income by 12%;
• Increased Community Net Operating Income ("NOI") by 13%;
• Improved our Operating Expense ratio by 50 basis points to 46.5%;
• Increased Same Property NOI by 7%;
• Increased Same Property Occupancy by 40 basis points from 82.6% to 83.0%;
• Increased home sales by 45%;
• Acquired 6 communities containing approximately 1,600 homesites for a total cost of $59.1 million, bringing our total property portfolio to 118 manufactured home communities with approximately 21,500 developed homesites;
• Increased our rental home portfolio by 905 homes to approximately 6,500 total rental homes, representing an increase of 16%;
• Expanded and extended our existing unsecured revolving credit facility, increasing the available borrowings and reducing interest costs;
• Issued 2,000,000 shares of a new 6.375% Series D Cumulative Redeemable Preferred Stock, for net proceeds after deducting the underwriting discount and other estimated offering expenses, of approximately $48 million; and
• Raised $35.1 million through our Dividend Reinvestment and Stock Purchase Plan."

"In 2018, we acquired 6 communities containing approximately 1,600 developed homesites for an aggregate cost of approximately $59.1 million. The average occupancy of these communities is 79%. We have expanded into new markets within our existing footprint. These new communities have favorable demographics with significant upside potential through the filling of vacant sites and from expansion capabilities. The acquisitionmarket remains competitive, but we are pleased with our ability to source deals and further grow the company through our acquisition program."

"We have experienced double-digit sales growth in each of the past 3 years, increasing sales by 45% this year. Home sales have returned to profitability. The housing market is benefiting from rising wages, increased employment and reduced government regulations. We are very optimistic about the future of our sales division."

"Our rental operation continues to drive our occupancy rates and improve our property operations. We have added an additional 905 homes to our rental portfolio which now contains 6,500 homes. We have maintained a healthy occupancy rate of over 92% for our rental units."

"The public REIT market experienced tremendous volatility during the fourth quarter and our GAAP earnings were negatively impacted as a result. The fair market value of our REIT securities portfolio has improved substantially subsequent to quarter end."

"Same Property NOI increased by 7% this year, driven by a 40-basis point increase in occupancy and a 350-basis point increase in site rent. Our same property results reflect the strength of our platform and the successes of our business plan."

"UMH is well positioned for continued success in 2019. We have grown our portfolio to 118 communities containing 21,500 developed homesites. Our overall occupancy rate increased by 40 basis points during the year from 82.6% to 83.0% at yearend. We have a business plan that has proven to deliver consistent long-term results. We have developed an irreplaceable platform that will enhance shareholder value. The demand for affordable housing in our markets remains strong which should lead to future revenue and earnings growth."

For earnings history and earnings-related data on UMH Properties (UMH) click here.

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